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To: Diamond Jim who wrote (60288)	7/14/1998 10:48:00 PM
From: Carter Patterson	Read Replies (2) \| Respond to of 186894

Let's not forget that CPQ just bought one of the biggest dogs of the last 10 years - DEC. Makes you wonder about their business sense. Would not be the first time that a sophisticated buyer blew it - AT&T buying NCR and HFS buying CUC.

To: Diamond Jim who wrote (60288)	7/14/1998 11:38:00 PM
From: Jules V	Respond to of 186894

Re: Yes, can't wait to see CPQ announce all those profits tomorrow. Zero. Excerpts: Compaq Says the Sub-$1,000 PC Is Now Its Most Profitable Model By EVAN RAMSTAD Staff Reporter of THE WALL STREET JOURNAL Compaq Computer Corp. said its cheapest computer is now its most profitable consumer personal computer, a surprising change in an industry where low prices have long been associated with slim profits. . . . . In addition, Compaq benefits when component prices fall faster than selling prices, as they have recently. Mr. Schrock said Compaq is paying 42% less for home PC components now than it was a year ago. But the average selling price for a store-bought PC is down 18%, according to ZD Market Intelligence, a La Jolla, Calif., market-research firm. Through the first five months of the year, the period for which the latest data are available, Compaq led the U.S. retail market with a 32% share in desktop systems; about 46% of its models sold for less than $1,000, according to ZD Market Intelligence. For PC makers, the home market for years has produced the slimmest profit margins, usually well under 10%. However, Compaq Chief Executive Officer Eckhard Pfeiffer said in April that its consumer division had reached the double-digit profit-margin range and last month said the unit was "doing a fabulous job." . . .