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

To: Roads End who wrote (22001)	3/16/1998 8:41:00 AM
From: Jason W. France	Read Replies (3) \| Respond to of 97611

FOLKS PLEASE READ THIS QUOTE FROM ECKHARD!!! This is coming straight from the horses mouth and I would say once again that I beleive any blind faith in this man us unfounded! If I were CPQ shareholder I would go to Houston for the shareholders meeting, and demand two things from Eckhard 1) More definitinve answers on their plans. The comments below do not sound like they come from a man that has a clear plan 2) the resignation of Earl Mason, as it is this man, that is root cause on their lack of progress But I am not a CPQ shareholder..... Memo to Mr. Pheiffer: there might be no doubt in your mind but there is some serious doubt in the minds of your customers and others!!!! please read very carefully the below comments from the CEO taken from WSJ article Jason " However, Mr. Pfeiffer said, Compaq's process changes have met technicalproblems and cultural resistance in the company and with dealers. "Going through this period here now will recrystalize the focus on execution," he said. "We will get there. There is no doubt in my mind of that." But he declined to say precisely how big Compaq's inventory problem has gotten and how quickly he expects it to be solved. Analysts estimate that Compaq products remain in dealers' hands from seven to 16 weeks. Somebelieve Compaq wants to reduce that time to three weeks by July; the company won't give a specific target. A trade publication, ComputerReseller News, reported that seven large dealers late last week hadapproximately 250,000 Compaq desktop units on shelves, far more than the 58,000 systems of International Business Machines Corp. and 40,000 of Hewlett-Packard Co.

To: Roads End who wrote (22001)	3/16/1998 3:24:00 PM
From: Jack T. Pearson	Read Replies (5) \| Respond to of 97611

According to the WSJ story, Compaq is writing off $500M because they have 250,000 PCs sitting on the shelves (more than the 58,000 IBM has and 40,000 HP has). But that means Compaq is writing off $2,000 for each PC on the shelf. Can those PCs have depreciated that much in one quarter, or even two quarters? I don't believe it! How can that be?! Can anyone explain these numbers other than to say Compaq is hiding some very major problem?