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

To: brian cranston who wrote (29453)	7/18/1998 1:00:00 AM
From: Maxer	Respond to of 97611

Compaq has gotten to big for itself-- IMHO-- for now that is. It will learn, but it will take a while. For the moment it's like a little kid learning to walk in a new body. i think that until compaq learns to run the profits will not be there and that the stock will be not be a thriller. Just my opinion.

To: brian cranston who wrote (29453)	7/18/1998 10:08:00 AM
From: rudedog	Read Replies (1) \| Respond to of 97611

Brian - by the way, anyone hear the news about DELL increasing the authorized # of shares from 1 billion to 3 billion? Yes that is in the Dell proxy for the upcoming shareholders meeting. Dell certainly defies gravity. They do an excellent job of managing wall street expectations, they have a very lean model which rides over the bumps pretty well. But I agree that they will have a very tough time in 99 - they have finally gotten big enough to see some of the problems that CPQ has been dealing with for several years. Dell can not maintain its growth as a 'one trick pony', riding in the wake of the big boys - they are one of the big boys now. i think CPQ's board and management are top-notch, and have no doubt that CPQ will be a powerhouse. there are just so many positives about CPQ, i am growing impatient that it should be taking this long for CPQ to get back firing on all cylinders CPQ has developed excellent fundamentals for continued growth and is positioned as the only credible full-range company which could take on IBM. They do have a great management team. I don't think it is as easy as some have suggested for a company which had 16,000 employees to digest 61,000+ people (54,000 from DEC, 7,000 from Tandem) without losing a little momentum. It is not really that important that they get 'on track' in 3Q or 4Q 98 from a profit standpoint. The most important thing is that they integrate the Tandem and DEC assets to build the powerhouse they are shooting for. If they are successful, we will see the kind of longer term gains that I have enjoyed in the past - I am currently up over 5X over the last 2 years! If CPQ did that again we would be at 200 in summer of 2000... If Wall street starts to see that kind of potential, the price will run up well ahead of earnings results. A solid foundation and a believeable plan for the next 12 months will do a lot more for the stock price than short-term fixes to boost earnings in 98.