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: Matt Meagh who wrote (26038)	5/11/1998 7:51:00 PM
From: John Koligman	Respond to of 97611

Matt I think in this case CPQ is really following HP's lead. If you have been looking at computer store ads over the past few months, you will have noticed that HP seems to have taken the lead in selling a 'computer bundle', consisting of the base system and a printer. The printer featured is of course an HP model, and they give you a 'rebate' if you buy all the pieces. Since there is additional profit in the peripherals, CPQ is simply trying to get a piece of HP's game. Since HP makes it's printers, my guess is that CPQ will get less out of it than HP, since they are contracting with Lexmark for the deal. As for Lexmark, it would have been the best stock to buy out of all three I have mentioned here. They were at the 17 level not that long ago, now over 60. I do think they make fine printers, I have a 4029 10p laser at home, purchased just when they were spinning off from IBM, and I like the box very much. Since Lexmark is much smaller than HP in the printer business and makes good boxes, I think they will continue to win some market share and do quite well. It was also anounced today that IBM has inked a PC bundle deal with Lexmark. I saw the article in news.com.... John