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

To: ed who wrote (20596)	3/8/1998 1:01:00 AM
From: Dr. David Gleitman	Read Replies (2) \| Respond to of 97611

To all: I don't know if this news item was already posted on this thread, but here it is anyway: Friday March 6, 6:38 pm Eastern Time Company 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).

To: ed who wrote (20596)	3/8/1998 1:09:00 AM
From: JGibbs	Respond to of 97611

I hope you are right. I am still putting a limit buy order in at $22.50 in case we go further south for a short period. CPQ will be above $40 by Christmas. (At least that's my bet) Appreciate your input.