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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (17474)	2/16/1998 1:11:00 PM
From: Kevin Chesser	Read Replies (1) \| Respond to of 97611

Mohan, let me revise and extend my remark. Dell is living IT UP on borrowed time. There is no argument of Dell's past performance and past revenue growth. Let us not forget though...Dell's total revenues are not 1/2 of those of CPQ. Growth rates alone I believe are a bit deceiving. It is easier for a smaller company to double revenues than a larger one. DELL has done remarkable things and trades at a PE in the 40's mainly because of its higher growth rate. I am not comfortable holding a stock with that high of expectations. I don't know when it will slow down but Dell will not continue that growth rate -- IMHO. That's why I am "way longer" on CPQ. Kevin

To: Mohan Marette who wrote (17474)	2/16/1998 7:06:00 PM
From: ed	Read Replies (3) \| Respond to of 97611

There is no way CPQ and DELL can both do well, the size of the pie is fixed, one have to sink!!! CPQ has been well established and paved the way for the next twenty years, while DELL is still following the old way, don't you know the industry has changed. Me too, think DELL is trying to buy time. The bomb can explode anytime if the sentiment of the market changed. CPQ should push the Alpha to be the industrial standard for high end CPU, the first step is dropping the price and let every competitor have the chip available. Then , your $35 investment is really buying two companies, one for CPU, and one for high and low end systems. So , CPQ at this point is well under valued. While DELL is way over valued.