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

To: robbie who wrote (19663)	3/5/1998 3:37:00 PM
From: Skipper	Read Replies (2) \| Respond to of 97611

ALL: My apologies if this has already been posted. Food for thought in these "trying" times. Subject: It's Not Compaq vs. Dell (Bear Stearns) > > Computer Week In Preview: March 2 > BEAR, STEARNS & CO. INC. EQUITY RESEARCH (Andy Neff) > > ----------------------------------------------------------------- > *** They Took Someone's Parking Space. While there is a high degree of > anxiety about levels of channel inventory, we think that investors > should be focusing on the larger picture: Compaq is continuing its > strategy of leveraging its scale and balance sheet to gain market share > through its aggressive product and pricing moves, which are designed to > maintain its momentum. These moves mean that what some would call > "stuffing the channel" may, in fact, be grousing by competitors that > have lost share or shelf space to Compaq. At the same time, we think > that the shift to "build to order" is progressing on new desktop product > lines, but the overall business still involves the older methodology of > discounts and other incentives, which provides a source of confusion to > investors which compare this blended system to Dell's pure "build to > order" model. > > It's Not Compaq Vs. Dell. And, while many focus on the issue of Compaq > vs. Dell, we believe that this perspective also misses the point. For > investors, the issue is not Compaq (with a global market share of 14%) > or Dell (with a global share of 6%); it is that the major players > gaining share from the second tier in the ongoing consolidation of the > fragmented computer industry as we have discussed elsewhere. In fact, > in 4Q97 (based on IDC's data), Compaq gained 3.6 share points from the > year before, while Dell gained 1.8 share points (although Dell's > percentage gain was greater) and H-P picked up 2.1 share points, while > many second-tier vendors lost share.

To: robbie who wrote (19663)	3/5/1998 3:37:00 PM
From: Eddie Kim	Respond to of 97611

Compaq still #1: techweb.com Digital's Low Cost Server: techweb.com

To: robbie who wrote (19663)	3/5/1998 3:45:00 PM
From: Elwood P. Dowd	Respond to of 97611

Robbie...Certainly it does! What do you consider conservative, stating flatly and boldly that CPQ would be at 40 from 34 in less than 5 days as others projected? I consider myself conservative and I was brushed off when I suggested that CPQ would end this week at 29 3/4. You have it backward. He has been conservative all along. He qualified as conservative before his opinion turned out to be correct and I'm certain he still is conservative, and if CPQ goes to 100, I suspect that he will continue to maintain a conservative posture, as will I. Stephen