Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Sasha who wrote (21184)	3/10/1998 7:45:00 AM
From: Kevin A. Lynch	Respond to of 97611

I agree Sasha, those numbers have to be studied on a relative basis. $2, to compaq, is nowhere near the equivalent $2 change in IBM, the = would be 7-8$. I do think CPQ held up OK yesterday, sure would like to see it hold 25 again today.

To: Sasha who wrote (21184)	3/10/1998 7:52:00 AM
From: van wang	Read Replies (1) \| Respond to of 97611

now I think CPQ is a good short...quick look at analyst revisions suggest low 0.68 to high of 1.38 for FY 98...most came in at $1...and $1.30 $1.35 for FY 99...growth rate on hardware companies should be about 20-23%...for CPQ prob 20%...right now, CPQ trades at about 25X FY98 and 19X FY99....dont hope for any quick rebounds...people buying are doing so for the long run...12 to 18 mo. play...there will be very little to push the stock up...any time CPQ goes up...there will be large institutional sellers...of course, there is that DEC thing which should take some time to digest...and who knows about the execution factor with the build to order model...I like my odds on the short side now amidst all this...CPQ/DEC inked an important deal with Sequent Computers for their high end NUMA-Q Merced Unix system...this system will be the first open systems server to challenge massively parallel processing mainframes and should serve DEC well in addressing their clients needs (in pursuit of CPQ's full service goals)...DEC will not need to develop their own NUMA which they are way behind...they will also have access to a partition NT/UNIX system (first of its kind)...now you could hold on to CPQ/DEC...but IMO, Sequent (SQNT) benefits greatly from this...they will finally have access to clients which use to ignore them because they are focused and small...Sequent trades well below hardware comparables and is focused in the hottest server segment where price competition is marginal good luck...I will be on the other side of CPQ...and long SQNT