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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: jim kelley who wrote (40819)	5/8/1998 9:39:00 AM
From: Mohan Marette	Read Replies (3) \| Respond to of 176387

CPQ's profits in 98 = 0 Jim, I will have to go along with your astute observation in this regard, considering the massive hit they have to take with the lay offs and the continuing 'stuffing' saga. If CPQ makes anything by cooking up the books,still the profit will be marginal if any.Let us see how they will achieve this amazing feat. 1.Massive wirte down/write off or whatever for the lay-off- 2 billion. 2.CPQ Server business = decreasing profit margin,and loss of market share. 3.Fantastic overall growth but most of it coming from Sub Zero segment which means less moolah to go to the bottom line. 4.Competitiors like DELL,HP taking market share from high end enterprise business.Unless the size of the market grows proportionately CPQ will have hard time not loosing some of the high-end business to competition. And lastly even if there were no lay offs,98 would have been a lackluster year for CPQ if performance in Q1 is any indication.However they will continue to dominate the 'cheap' PC space nd will gain market share,but that is not saying much is it??????