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

To: Night Writer who wrote (29487)	7/19/1998 12:52:00 PM
From: John Koligman	Read Replies (2) \| Respond to of 97611

NW, One positive will be the 'buffering' that CPQ should be able to enjoy due to the service arm they have acquired. Everyone has been knocking IBM for years, but the fact remains that if you look at their stock price, it has not suffered much at all this year and during last fall's tech debacle. This despite the fact that they have been slipping again in the PC business. Also, all their main businesses aside from services have grown very little over the past few years, and in fact some have shrunk. Services are the growth area for them. All surveys I have seen show IBM falling further and further behind the market PC leaders in share and unit volume. The key is that other parts of their business shield them, as I think services will provide 'another leg' supporting CPQ. I just read an article yesterday that stated it costs 12-13k/year to support one networked PC. Since that PC probably sells for 1.5-2k these days, there are substantial revenue streams 'outside the box'... John