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

To: Loki who wrote (21858)	3/16/1998 12:30:00 PM
From: Loki	Respond to of 97611

My Compaq View Recap......#1 So why did a business person who learned, practiced and preached..... BTO since late 1960's-early-1970's JIT since late 1980's Direct Sales Model in US (1993) from distribution channel. (In a price competitive environment distributors usually have little added value) .....choose to invest in CPQ instead of DELL last July? IMO-CPQ was a very profitable company with the potential of implementing business models (above) that would sustain and enhance this profit. Looking at the last 7 months, my decision to choose CPQ over DELL is not what I expected as an outcome. These business models have not yet materialized and therefore, realized benefits. My investment strategy (concerning CPQ) is not at an end and therefore, I choose to reserve final judgement until the situation is clearer. (As stated, before, I need to use other stocks to make money short term) DEC Acquisition: As many on the thread know I have been extremely reserved and conservative in my evaluation of the DEC acquisition. This is not only based on the other industry examples but also from my personal experience. The DEC acquisition is obviously not 100% positive or negative. There is more potential long term value to DEC than CPQ will end up paying. It is "how" the integration will take place that will determine the effectiveness of this acquisition. (I am anxiously awaiting more information on this issue---see Jan. 31 posts for my initial concerns) Positives: 1. Balance Sheet of DEC 2. Complimentary Products/Services 3. Technology/Intellectual property 4. Brand Name The Mason fiasco is not one that instills confidence. When one miss judges (or misleads) 500+ mil on the income statement it translates into a considerable percentage. This is beyond the tolerance of propriety. It appears too obvious an error. I find it difficult to believe that a CFO of a $25bil corporation is not aware of this type of information and therefore, assume it was in the plan, but a public relations error occurred. (Ofcourse, KAOS always believed Maxwell Smart to be clever) Complete judgement is still out. (see post 19777...I hope Mr. Mason answers my concerns before for I completely form my opinion. Loki