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

To: John Koligman who wrote (33462)	9/25/1998 2:10:00 PM
From: Roads End	Respond to of 97611

We might get a little more information at 11:30 Pacfic time when Michal Dell appears on CNBC. I am of the opinion that what is good for Dell is good for CPQ now that the inventory problems are behind us. Steve

To: John Koligman who wrote (33462)	9/25/1998 2:19:00 PM
From: Roads End	Read Replies (1) \| Respond to of 97611

RE. the analyst meeting at 11:30 per Dan Niles, an analyst with BancBoston Robertson Stephens <<What should keep Dell's growth rates above the industry average, says Niles, are server and notebook sales, which are taking on increasing prominence in Dell's business. "Dell's server business is on fire," says Niles, who said the company said Thursday night that sales at its enterprise sales unit, which sells lucrative servers and workstations, should more than double from year-ago levels. And that probably will mark a decline from the second quarter's 136% sales growth at the unit. "This growth should offset declining ASPs that Dell has been seeing over the last year or so," says Niles. As long as Dell can maintain robust sales growth in the high-margin enterprise line, it should be able to stay out of the sub-$1,000 market and avoid a dogfight with price-chopping competitors such as Compaq (CPQ:NYSE) and Hewlett-Packard (HWP:NYSE). >> Doesn't this guy think there will any fight in the enterprise line? The way he puts it CPQ and HWP will just lay over and let Dell walk right in. Wrong Steve