Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: K. M. Strickler who wrote (17546)	2/17/1998 9:32:00 PM
From: John Biddle	Read Replies (1) \| Respond to of 97611

I agree that Compaq has no need of a Gateway. If they want to go direct, they now have Digital, and can do it with them. DEC name has little if any recognition in the home market, yet, but the profit is in selling thousands of PCs to corporations. Most of Dell's business is of this type, and no small part is ex-Compaq customers who wanted to buy direct. I think CPQ could win many of them back with a DEC based direct business.

To: K. M. Strickler who wrote (17546)	2/18/1998 12:08:00 AM
From: Yikes!	Read Replies (1) \| Respond to of 97611

Doesn't Micron exist?

To: K. M. Strickler who wrote (17546)	2/18/1998 4:00:00 PM
From: RetiredNow	Respond to of 97611

You're right that CPQ could move in to the direct channel anytime they wanted to, but the problem is lead time. They've been trying to purchase Gateway for awhile now, but Gateway won't sell. It takes a long time to build a business like Dell or Gateway from scratch, that's why CPQ has not entered this segment yet. I think they're still looking for an acquisition to round out their portfolio. As far as what I think we should own: I own CPQ and won't sell it for anything. I wish I owned Dell prior to the recent runup, but now feel it is overvalued. Gateway, I don't know much about. Conclusion: CPQ is the sure thing long term. Dell is a risky play.