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

To: peacelover who wrote (28940)	7/13/1998 3:34:00 PM
From: E. Graphs	Read Replies (1) \| Respond to of 97611

Peacelover, RE:>> I do not believe we are sinking or ever will.<< Sinking???? No way. This stock looks like it's breaking out......hope to add at ~30 if it pulls back before a move to 38/40. jmho Good Luck, E. Graphs

To: peacelover who wrote (28940)	7/13/1998 4:46:00 PM
From: rudedog	Respond to of 97611

peacelover - Still here, still long on CPQ. In case you were not watching my posts in May and June, I moved a fair amount out of Dell at 91.5 and into CPQ at 27.5. Despite the large recent gains in Dell, I am still farther ahead with CPQ (I would have made 15.8% gain on Dell vs. 18.1% gain on CPQ). GO CPQ!!! I hope cpq's management is fuming over this matter I think what you are seeing is a somewhat more conservative positioning with Wall St. given the 1Q problems but it is obvious that the combined company is a powerhouse. Look to see a much more aggressive positioning in 2nd half of 1998. Dell is a fine company but they are just beginning to address the hard problems that CPQ has been working for the last 2 years. CPQ is just about ready to move into a whole new market space with great talent and huge momentum. Dell is riding the wave of their high efficiency model but they will have to change significantly to maintain that growth. Dell has identified enterprise accounts and servers as their target areas for growth, but they do not have the infrastructure or alliances to succeed in that space against CPQ and HP. Dell's growth rate in servers is impressive but their numbers are still small - they are 'skimming the cream' of accounts who can do without a full service offering and in-depth engineering capability. I think Dell will be able to maintain adequate growth for another 12 to 18 months, but if they do not use that time to transition to a full-service infrastructure they will eventually hit the wall. Dell is reluctant to do that because it is the opposite of their model - services are a high fixed-cost, low ROI business that is foreign to Dell management. Another way Dell could go is to take the company in a completely different direction, one which fits their model better. There might be a play somewhere in the internet space which fits the bill. I don't have a clue as to what they are thinking along those lines, but I know their actions do not currently match their stated business plan (i.e. grow the enterprise business). Dell is too smart to just sit and wait to hit the wall. It will be interesting to see what they do to get through. But at the moment most of my money is on CPQ.