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

To: Satyr who wrote (19119)	3/3/1998 9:17:00 PM
From: robbie	Read Replies (1) \| Respond to of 97611

<<if you sell a machine for $1000 and make $100 Then you sell a machine for $800 and make $90 Is your margin higher on the second machine although your profits are less?>> Margin is higher and profits should be greater, since you will probably sell many more of the machines at 800 than you would at 1000. The bears, however, argue that selling a lot of these 800 machines cannibalizes somewhat sales of higher-end, more profitable systems, such as 1500 dollar machines where the profit is say 250. Robbie