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

To: E.H.F. who wrote (22981)	3/22/1998 4:31:00 PM
From: van wang	Read Replies (4) \| Respond to of 97611

just as matter of information exchange...I think the mkt would be hesitant to short CPQ if Buffet took a large stake in CPQ..which he has not in addition, the book is to enlighten not to project...providing insights to valuation measures that is misunderstood..for all us, more information is better...I did not mean that you did not know how to pick stocks just to be specific...why should terminal PE be 20 at the end of 10yrs... PE is a reflection of long term earnings (dividend) growth (future) not size...presumably to get more sales the lower the price and margin so top line is not the same as bottom line growth...in addition, lets say next five years growth is 20%...then nearer years growth must be high and descend to lower growth rates...because the size issue...this is growth rate projections across the business lifecycle...for me to project 20% for next five years then earnings must grow about 35 to 40% this year and then descend...for 20% earnings growth for the next 10 years then what do u think the growth rate should be in the near term for 10 yr earnings growth to be 20%...this is just to confirm what your assumptions are to what is reality... to be more acute, MSFT 5yr estimated earnings growth is 25% and that is a company half the sales total as CPQ and much better profitability measures plus most countries discussed are non OECD countries besides being non US...I will assure you that in Asia, Japanese brands are King and CPQ is ntg...they also have more back door shops then you can imagine ...in HKG, there are malls where u can go in and some guy can build you a computer with u specifying and inspecting the components...and of course, real cheap just my perspective only...who has traveled abit