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

To: van wang who wrote (22547)	3/19/1998 7:50:00 AM
From: Danny Chan	Read Replies (2) \| Respond to of 97611

Compaq (NYSE:CPQ)-small firms to spark sales growth Reuters, Thursday, March 19, 1998 at 07:31 HANOVER, Germany, March 19 (reuters) - Compaq Computer Corp (NYSE:CPQ) said on Thursday it was launching a world-wide offensive to capture a large share of the fast-growing market for PCs for small and medium-sized business. Compaq said that market is increasing 18 percent a year and that it aimed to grab 20 percent of the business by the year 2000, chief executive Eckhard Pfeiffer said at a news conference at the CeBIT trade fair. By packaging products, financing, help services and electronic commerce advice for small companies, Compaq expected its sales to these customers to reach $16 billion, he said. "Our strategy is to offer tailored, integrated computing solutions that will help these companies compete in today's global marketplace," Pfeiffer said at a news conference. As part of its "Entrepreneur Solutions" programme, Compaq unveiled a new portable PC and a server loaded with software for small companies. It also introduced low-cost networking products and said it would release a handheld PC designed for travelling business people. Along with these products, it said it would offer special leasing and financing options, and telephone support where customers can get help setting up products from Compaq and other suppliers. It would also work with Inex Corp to pre-load Compaq servers with Inex software that small businesses can use to set up sales sites on the Internet. Compaq said the small business segment would make up more than 50 percent of the total PC market by 2000, and would play a major role in its effort to lift sales to $50 billion in two years from $24 billion in 1997. It would also work with the dealers who sell its PCs to end customers to set up Internet sites to provide the customers with product information, technical support and opportunities to buy PCs on-line. Compaq, which recently forecast first-quarter results well below estimates, does not sell PCs on-line itself, although rival Dell Computer Corp (NASDAQ:DELL) uses the Internet to ring up about $4 million a day. frankfurt.newsroom@reuters.com))

To: van wang who wrote (22547)	3/19/1998 11:47:00 AM
From: Stephen	Read Replies (2) \| Respond to of 97611

Van Wang ... I remain unconvinced about the stock continuing south to 20. If Compaq management do their stuff like 3coms did, they can start a daily 'news' blitz campaign to hold the price up. Once it stabalises, sentiment could change. This may already be the strategy they have in mind. Then the recommendations come in and the direction changes ... Course Compaq then needs to deliver better than (now) expected qtr results, which I personally think they will as they are smart enough to know how to play the numbers game. I think that there are many investors out there who want a piece of this stock and are waiting for an entry point. If we don't see further deterioration ... who knows .. this could be it ! As you correctly state, the money inflows have to go somewhere and will rotate. As soon as they think Compaq could reasonably appreciate by year-end, they will jump on it as they can then leave it in their portfolio for next year (assuming no market hiccup)... all imho. Only time will tell !!!! In any event, I still like their business model strategy and what they are doing despite all the criticism. And long term I think they will do much better than Dell because of their diversification. Heck, with DEC they even get a piece of the internet, plus data storage etc, etc, etc .... . if it falls further I will buy more !! Good luck with your trading ...