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

To: Jorge who wrote (18543)	2/28/1998 10:58:00 AM
From: KAD	Read Replies (2) \| Respond to of 97611

To Thread: Here are some personal thoughts: 1. The Market generally is looking at near term (1Qplus) this has changed from the earlier (before this great Bull run) more longer term perspective. Near term the merits of the DEC merger have been embraced but the execution is very much in question. The Market is skeptical whether Compaq can digest DEC. And realistically why not - which great High tech merger in recent years has gone smoothly? And this is the biggest ever! But those that believe that this is different with a different management team will be rewarded handsomely! 2. It is not appropriate to compare Compaq and DEll's current stock performances - they are now different companies. It is hard not to "lasciviate" at DEll's meteoric current rise and the DEll thread is a Carnival of optimism and bedlam - rightfully so. But many of the DEll die-hards also are CPQ holders and maybe some of you should consider holding both - (caveat though at this PE( >50 for DELL )level. 3. The Channel Inventory situation may or may not be an issue - but rest assured Compaq Management will deal with it at the appropriate time. Just a note - Presarios are the consumer product and are sold thru the RETAIL channel - there is also a non-retail channel which is the channel for Compaq's bread and butter Commercial Desktop products. 4. As for the short term and long term direction of CPQ .. one only has to look at EP's record. He has not made a single blunder since he has been at the helm. Only Gates probably rates in the same category (IMHO). He is very patient and understands that old AESOP fable about the Tortoise and the Hare. He has definitely won the hearts of his employees who were skeptical after he came in as an "relative outsider" and took over from a very popular founder. He has gradually put his mark while maintaining the distinctively competitive culture. 5. On the DEC merger activity, Compaq cannot (by law silent period) and why would they tell what they intend to do? They have a plan and in due time will unfold it when the Merger is in the bag! My guess is there is a lot of activity going on in this area. 6. Finally I think that the rewards will be there for those that are patient and are able to look at the whole picture - there is so much going on in this dynamic and competitive times we live in! Way Long CPQ but can make money on other stocks too! KAD