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


To: NickSE who wrote (27309)6/9/1998 5:17:00 AM
From: isdsms  Read Replies (2) | Respond to of 97611
 
* Compaq (CPQ - news) is looking to the Internet, rather than features or computing muscle, to drive computer sales as it
rolls out its fall consumer line today.
************************************
Maybe this is why the bears are stiring.



To: NickSE who wrote (27309)6/9/1998 9:38:00 AM
From: rudedog  Read Replies (1) | Respond to of 97611
 
Market Babe seems to have about the same research skill as my 5 year old son. let's look at a few minor errors of fact...
Approximately 95% of total hardware sales come from PC's
This is based on units, not revenue, and even then she would have to include $50,000 intel-based servers as 'PCs'. The correct number based on revenue is about 60% according to IDC.

DEC, currently has a some great products, notably the 500 MHz Alpha chip. Believe it or not, this chip was introduced three years ago
Alpha was introduced 6 years ago

In addition, currently DEC, doesn't have a future product cycle. At the very minimum, they should have a 1000mhz chip in the works
The Alpha product roadmap, which includes a 1000mhz chip based on the .18 micron process available in about 2 years, has been public for some time.

So, in sum, CPQ has bought a company that possesses a small amount of market share in a highly competitive space, has a great product but without a marketing effort to support it, does not have a future product cycle in the works, and is thus without the benefit of future revenues in the pipeline. Plus, CPQ paid up for the privilege of owing this company.
DEC has nearly 30% of the multivendor services business, second only to IBM. CPQ would have bought DEC for the services business alone, the rest of the company is a 'freebie'. CPQ paid considerably less than 1 year's earnings for DEC, and in addition the DEC cash position and the cash from the intel settlement cuts the price in half.

I hope this lady is good looking, because she's never going to win any points for her mental skills.



To: NickSE who wrote (27309)6/9/1998 6:00:00 PM
From: NickSE  Read Replies (1) | Respond to of 97611
 
Compaq Computer (CPQ 29 9/16 +13/16) releases its Presario Internet desktop PC. In deals associated with the release of the product, CPQ signs a a multiyear agreement to feature AOL on all Presario desktop Internet; names Digital Equipment (DEC) unit Alta Vista the default search engine of the PC; inks a 4-year Internet access pact with GTE Corp. (GTE) to offer dial-up Internet access to all Presario PC users; and signs distribution with Yahoo! (YHOO 114 3/8 +5) to make My Yahoo! the default start page for the Internet PC.
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