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

To: rudedog who wrote (30064)	7/29/1998 2:22:00 PM
From: John Koligman	Read Replies (1) \| Respond to of 97611

Small piece from Dow Jones on CPQ/Radio Shack 'store within a store'.. Also, on this whole business of AltaVista, I think we should keep in mind that CPQ bought DEC for less than Yahoo would sell for today, and that includes AV. Might look more and more like a steal as times goes by.... John Dow Jones Newswires -- July 29, 1998 Tandy, Compaq To Launch 'Store-Within-A-Store' Concept Dow Jones Newswires NEW YORK -- Tandy Corp. (TAN) and Compaq Computer Corp. (CPQ) will launch a "store-within-a-store" concept at RadioShack outlets in an attempt to lure families interested in buying computers for their children, according to Tandy Chief Executive-Elect Leonard Roberts. "You've the best-selling personal computer brand out there, Compaq, joined with the No. 1 trusted source of answers in consumer electronics," Roberts told CNBC Wednesday. "It's all about children," he said. "It's all about having a very comfortable, non-threatening environment to learn about computers." The computers that will be sold in the so-called learning centers will be exclusive to RadioShack, Roberts added. "The computers themselves are exclusive," he said. "Nowhere else can you buy or have this kind of series." While acknowledging that computer retailers have faced difficulty selling computers off the shelf, Roberts said computers represent only 10% of Tandy's business and the company plans to keep them at that level. Tandy expects $30 million in profit this year from residuals from the sale of consumer services, he said. "We sell wireless, ... we sell direct-to-home satellite services and we sell pagers and we sell long-distance" for Sprint Corp. (FON), he explained. "Every time a consumer ... pays their monthly bill to the provider, we get a residual back. We get a piece of the action, so to speak." The executive expects the amount of pure profit to be gained from such residuals to possibly exceed $100 million a year by 2000. - Ted Kemp; 201-938-5392