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

To: Mike Gordon who wrote (20813)	3/8/1998 9:43:00 PM
From: Roads End	Read Replies (3) \| Respond to of 97611

Mike...This management is not stupid. Your are frustrated with the share price and you are not alone. You could only call this management stupid if they stood by and did nothing to adjust a business model that needed changing. This company is undergoing metamorphosis. Their PC competitors will change too. Dell isn't going to sell networking equipment and through the internet. There has got to be some service and Dell aint got none. PC's to the consumer through the internet works but it is an easy model to copy and CPQ will have theirs soon as will everyone else. IT expertise is a different matter. That is why the white box guys are able to sell their product. That is why CPQ's management is doing what they are doing and it is not "stupid".

To: Mike Gordon who wrote (20813)	3/10/1998 12:43:00 AM
From: Challo Jeregy	Read Replies (1) \| Respond to of 97611

Mike, Eddie found a bit of news that might explain the write-off situation: . . . Mason said Compaq decided to "take an additional pricing and promotional reserve" and "cut back on the number of older products we were putting in the channel." The CFO wouldn't say exactly what extent the company was cutting back commercial PC manufacturing, but he described it as "fairly dramatic." The company is only manufacturing newer products, he said, as it phases out the older. Mason said these actions would prevent Compaq from taking an inventory write down during the first quarter. . . Check his post #21160. Regards, Challo