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

To: QMS who wrote (22873)	3/21/1998 4:11:00 PM
From: Hunter	Respond to of 97611

I think we need to put this "stuffing the channel" issue into perspective...at the end of every quarter manufacturers routinely load up distributors with inventory (this is a common practice). This practice is especially popular in the 4th quarter due to year end calculations. Compaq is wading through several issues now: 1) transitioning to BTO, this is coming online now and; very successful so far. 2) Intel product transition to PII. 3) Overestimated demand. Couple this with several LARGE acquisitions: Tandem, Microcom and DEC and you see the kind of environment in which CPQ operates. CPQ would not sacrifice their long term vision for short term results (ie: stuff channel to make qtr numbers). Its not worth it. Enjoying the ride...Peace