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

To: Analog Kid who wrote (28403)	6/30/1998 9:34:00 PM
From: John Koligman	Read Replies (2) \| Respond to of 97611

Analog - One of the articles I read today said CPQ management made the printed circuit board move because it frees up a building they will need to handle projected growth in building PC's, and that even though it might cost a bit more by using contractors, it was the most efficient use of capital for them. Maybe Rudedog can comment further. John

To: Analog Kid who wrote (28403)	7/1/1998 1:22:00 AM
From: PaperChase	Respond to of 97611

Maybe CPQ won't lose money contracting out the PCB manufacturing. With the strong U.S. dollar making imports cheaper, this manufacturing could belong offshore to save money, even with contracting costs. Of course, under this scenario, CPQ is gambling that the U.S. dollar will remain strong for along time. Later switching back to building in the U.S. would make management look bad and will cost lots of $$$. But so what! When CPQ can take billion dollar write-downs and Wall Street doesn't blink, then they can make all kinds of mistakes.