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

To: J. David who wrote (20187)	3/7/1998 1:17:00 AM
From: Dave Krishna	Respond to of 97611

I agree with your views and also believe the 2nd half of 1998 will be the time when Compaq gets their problems worked out. Yes the stock will be dead money for a quarter, but we have to remember that the price will reflect the future. The future is a good one. If the DEC aquisition helps CPQ with the corporate environment then this current problem with business inventory will be worked out. News regarding adsl, Compaq's role, and it's rollout will be coming throughout the year. This is what I believe will kickstart the whole tech sector. Faster downloads will allow more people to do more things on the internet. I think this will increase the demand for computers and all related equipment. None of this is factored into any companies' stock, but this technology is coming. So, yes, short term I won't kid myself either. The stock will not be going anywhere. I suspect some stagnation for a quarter. But the rest of this year presents a future I don't want to miss. So, if anyone wants to sell me their shares at 23, I'll take 'em off your hands. <G> Regards, Dave

To: J. David who wrote (20187)	3/7/1998 11:17:00 AM
From: Box-By-The-Riviera™	Respond to of 97611

ompany Press Release Computer Reseller News Reports High Product Inventories At Compaq And IBM Excess Stock Contributed to Compaq's Earnings Warning MANHASSET, N.Y.--(BUSINESS WIRE)--March 6, 1998-- Compaq Computer Corp. [NYSE:CPQ - news] and possibly IBM Corp. are grappling with excess inventory as these vendors continue to migrate to a channel-assembly business model, according to CMP Media's Computer Reseller News. In Compaq's case, the situation is so severe that the company today issued a warning to Wall Street that it would not meet its first-quarter sales and earnings expectations. To reduce its distribution-channel inventory, Compaq said it will put in place price reductions and promotions. In a story posted on its Web site (http://www.crn.com) today, Computer Reseller News reports that Compaq has 20 times more Pentium and Pentium Pro desktop-PC inventory than Hewlett-Packard Co. [NYSE:HWP - news] and five times that of IBM Corp., according to spot-checks of seven distributors' online systems. More specifically, Pentium and Pentium Pro desktop-PC inventory from the spot-checks indicate HP has approximately 9,500 units in stock while IBM has 46,000 desktops. Compaq, by comparison, has 200,000 units. The inventory pileup comes as Compaq and IBM are offering the channel quarter-end buy-ins again, distribution-channel executives said, adding that Compaq's program is the most aggressive. HP was not offering buy-ins, channel executives said. In addition to its online reporting of the excess-inventory story, prepared by Joe Wilcox and Christina Torode, the technology newspaper will publish a full report in its March 9 issue. Published by CMP Media Inc., Computer Reseller News has a circulation of more than 115,000 and reaches readers with the product trends and industry news needed to sell comprehensive technology solutions. The publication's news coverage is also available via e-mail through CRN Direct. This free, customizable daily newsletter -- available in both text and full-HTML formats -- allows users to choose up to 20 companies, products and trends to track. Registration for CRN Direct is available through CRN Online (http://www.crn.com). CMP Media Inc. (Nasdaq: CMPX - news) is the only high-tech media company providing essential information and marketing services to the full technology spectrum -- the builders, sellers and users of technology worldwide. With its portfolio of leading newspapers, magazines, Internet products and conferences, CMP Media is uniquely positioned to offer marketers comprehensive, integrated solutions tailored to meet their individual needs. Online editions of the company's print publications, which include EE Times, InformationWeek, Computer Reseller News and Windows Magazine, along with products and services created exclusively for the Internet, can be found on CMPnet at cmpnet.com. NOTE: For more about CMP Media Inc., including recent press releases, investor information, executive bios and directions to CMP offices, visit cmp.com.