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

To: CGarcia who wrote (32877)	9/13/1998 5:16:00 PM
From: Satish C. Shah	Read Replies (1) \| Respond to of 97611

Hello: From today's Baron... excerpt... .., Rizza has been searching for new ideas. For instance, he thinks the time has come to buy Compaq. The PC maker, he says, has completed the Digital Equipment acquisition, and survived the PC inventory correction without any major earnings disappointments and without losing its position as the world's leading PC company. S. Bob Rezaee, technology analyst with the $10 million Dresdner RCM Global Technology Fund, He also shares Rizza's enthusiasm for Compaq. The PC maker, he says, should benefit from seasonal PC strength this fall, adding, "People underestimate the synergies between DEC and Compaq." Elijah contends that what's really been ailing Intel and other PC-related stocks has been a generational change in technology as users move to the Pentium II microprocessor from the Pentium, and to 64 megabit DRAMs from 16 megs. Earlier in the year, he says, Compaq, IBM and Hewlett-Packard all had excess inventory of boxes based on older technology. As they tried to get rid of them, he says, earnings suffered, and demand for components sagged. But the signals coming from the PC companies now, he says, suggest the transition has been completed. In the Robertson Stephens Information Age Fund, which holds only technology stocks, Elijah earlier in the year cut back holdings in semiconductor stocks, while beefing up holdings in software stocks. More recently he's been reversing the trend. The fund also holds a smattering of hardware stocks, such as Compaq, Dell and Gateway. Microsoft, Cisco, WorldCom and AOL are big holdings as well. Regards, Satish