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

To: Eddie Kim who wrote (26952)	6/2/1998 10:31:00 AM
From: peacelover	Read Replies (1) \| Respond to of 97611

Eddie, I sincerely believe cpq will roar once merger with dec is completed and they start talking to wall st. about their overall strategy. I assume they are in a quiet period now until the merger is finalized. Do you have any idea if this inventory bs is done and over with? Peace and good luck. peacelover

To: Eddie Kim who wrote (26952)	6/2/1998 11:40:00 AM
From: William Hunt	Respond to of 97611

EDDIE --- This is how to talk up your stock ---Dow Jones Newswires -- June 2, 1998 Dell CFO Downplays Price Declines In Speech To Investors NEW YORK (Dow Jones)--Dell Computer Corp.'s (DELL) finance chief, Thomas J. Meredith, said Tuesday that investors should concentrate on the company's revenue and earnings, not on the recent declines in the average selling prices of its computers. "There's nothing to be frightened about," Meredith said of the price decline reported in the company's first-quarter earnings release. Meredith was addressing a group of investors at the PaineWebber Growth & Technology Conference here Tuesday. Concerns about Dell's slight decrease in PC selling prices and its valuation have contributed to a decline in its share price since the first-quarter report was released May 19. Dell shares recently were up 1 15/16, or 2.5%, at 80 1/4. Trading volume was 6.1 million. Average daily volume is 16.8 million. Meredith said the recent price wars between International Business Machines Corp. (IBM) and Compaq Computer Corp. (CPQ) "eventually" will work out, resulting in the top five PC makers gaining a larger portion of the overall consumer market. He noted that right now, the top five PC vendors controlled only about half of the total market, but that is changing. In his bullish comments, Meredith also seemed to address investor concerns about Dell's valuation. He noted that Dell has grown by more than 40% a year for five years and asserted that Dell is trading "at a discount" to companies with comparable growth such as retailer Home Depot Inc. (HD). Meredith flirted with the idea that Dell will meet analysts' expectations of hitting $17 billion in revenues this year, up from more than $12 billion last year. "We'll see how that plays out," Meredith said. Also, Meredith said Intel Corp.'s (INTC) decision to delay introducing its own Merced chip until 2000, which would impact Dell, could work out to Dell's advantage. "For Dell, it's not a significant aspect," he said. "It will give us a chance to learn about the high end of the market for six months more." Dell will perhaps address a sub-$1,000 computer when Intel introduces its second-generation chip for that market, which is code-named Mendocino BEST WISHES BILL P.S. And we are in the same business ! AT least one positive comment that we will be eliminating the medium and small guy from the business ---this bodes well for the long term ---Sure wish it was CPQ doing the talking !