Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: William Hunt who wrote (25937)	5/9/1998 8:26:00 AM
From: rudedog	Respond to of 97611

1) I think EP is being cautious - most people at CPQ seem to think that it is going OK but still under a lot of competitive pressure esp. from IBM which stuffed even more than CPQ but because of their distribution the info was not as public. 2) DEC restructuring takes into account a lot od R&D which will be discontinued - the investment in that R&D becomes a restructuring charge. Examples are development of product lines that would not fit into the new combined companies, product lines which will be discontinued, etc. 3) CPQ buys a lot of intel parts under forecast model to get good pricing, my understanding is that they have worked a deal (like Dell's) where they don't actually pay for the parts until they are loaded into a computer but this gives Intel an idea of how many to build. Keep in mind that CPQ is Intel's largest customer, they have to work together on build plans. I think that the 3Q and 4Q numbers will look good and will beat forecast, and that CPQ will make up a lot of lost ground in 2nd half 98. JMHO though...