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

To: Dulane U. Ponder who wrote (21305)	3/10/1998 8:37:00 PM
From: John Koligman	Respond to of 97611

Hi Dulane, I think to some extent CPQ might be kicking it upstairs by going after DEC because they can see the success of Dell's model. I think they also see higher margins there. Also, there have been comments made on this thread as to the fact that in the near future services will provide much better profit than hardware (ala IBM). Something to think about for CPQ. As for retail, CPQ isn't ceeding that market because Dell is not in retail stores. Dell has excelled at picking off the cream of the desktop market (high end) and beating the indirects with it's model. I see all the comments about 15, I have seen that on many threads over the years where people think they will get a quality stock at a firesale price, it rarely occurs. More likely, I have seen stock prices turn quickly when this kind of talk is on a thread. In either event, CPQ is all of a sudden being looked at as some 28 pound weakling. This is a large, powerful, cash rich and well managed corporation. I suspect Pfeiffer and Mason will have some things up their sleeves to give this story a positive spin in the near future. I also think there is some pent up demand coming this summer (WIN98/DVD/USB), and next year, NT 5 and Merced. NT 5 and Merced should be big plusses for CPQ's high end business, and will also help Intel (finally). That said, I've noticed that 'Bald Man from Mars always seems to show up on threads where stocks are having trouble, right around earnings time. Don't know what that might mean, though. <ggg> John

To: Dulane U. Ponder who wrote (21305)	3/11/1998 8:05:00 AM
From: James Cotton	Read Replies (2) \| Respond to of 97611

The Real issue is bloated inventory levels. CPQ has mis-managed inventory while trying for new manufacturing model. It did not work. Who's at home managing the store? Real management credibility issues.