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

To: Night Writer who wrote (25824)	5/8/1998 1:12:00 AM
From: X Y Zebra	Read Replies (1) \| Respond to of 97611

In Re: the news in Europe. One of the reasons (IMO), that Europe will become an important market, not only for Compaq but for many efficient corporations will be the implementation of the "EURO" single currency. Why? If the system (EURO) is to work, the 11 European partners will have to make their respective economies to work under the premise of "free markets", many of the inefficiencies of many of the European countries, given the level of social welfare that exists, will prevent them to successfully implement the intended system. In principle they are attempting to have a unified currency that if it works there will be an eventual political unification. Personally I believe that there will be a middle of the road success, I think that they will succeed at the currency unity, and I doubt that there will be a total political unity. The reason for this is that the individual wallet is the ultimate judge of what a success a specific proposal will have. In the initial years, there will be a push to bring the standards of the "poorer" countries to a level of the "richer" countries, together with the commitment of West Germany to "remodel" their new purchase (East Germany), there will be considerable renewed economic activity. In both instances the process of making all these economies more efficient, means an "upgrade" of a lot of antiquated systems, both in private industry and the respective governments. All of the above will create an environment of renewed economic activity, particularly in the products that Compaq manufactures. If Compaq is ready and prepared to take the challenge, it will be benefited by this renewal of economic activity. In addition, the Western European base will serve as a springboard for additional sales into the former Eastern Block. By all means it does not mean this is a guaranteed bonanza, the inherent mentality of the European is on the side of large bureaucracies, however, the recent experiences in the Soviet Union, the Eastern Block, and their own failure in welfare societies with double digit unemployment will give free markets a chance. Particularly interesting will be countries like Greece, Italy and Spain, who stand to gain the most under an integrated currency system, not forgetting that if they succeed as a block, their local markets will pale in comparison to a far larger market under unification. Provided their respective governments are willing to make the necessary changes, which I suspect many of these changes will be forced by the invisible hand of the free market, the unification of the European Currency will present Compaq, and other "efficient" companies, an unprecedented opportunity to increase business. I guess the Daimlier-Benz ~ Chrysler merger is the future of business in the future, so to see the European as a single integrated market is not a too out of the question scenario. Only my opinion. Z.