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

To: Eddie Kim who wrote (33797)	10/5/1998 9:58:00 AM
From: PCSS	Read Replies (3) \| Respond to of 97611

I'm getting a sense that someone very large is slowly bailing out of CPQ this morning (a loy of large block down-tick sells). Is there something regarding earnings we don't know ? Is this 10/97 deja vu all over again ?? Michael

To: Eddie Kim who wrote (33797)	10/5/1998 10:34:00 AM
From: rudedog	Read Replies (1) \| Respond to of 97611

Eddie - Drew sure loves Dell. He believes this is a sports event with one possible outcome, someone will win and someone will lose. Therefore anyone who has a diversified techs portfolio (i.e. did not sell everything and BUY DELL with the proceeds) is not of the true faith. I think the critical question for Drew is the one I asked him in my last response to him. But I can make that statement stronger. Let's say we found out that MSD was not the paragon of integrity we have heard about on the Dell thread, but in fact had engaged in a number of questionable business practices and was under investigation by the SEC, DOJ, and a consortium of state attorneys general. Let's also assume that CPQ successfully clones Dell's direct model and outsells Dell 2:1 in the commercial desktop space. Finally, lets assume that Dell begins losing share to a new, aggressive IBM 'company within a company' when IBM buys GTW. Now assume that Dell, despite these setbacks, shifts gears, gets heavily into internet services, builds a fast growing e-commerce business, and Dell's stock price continues to go up. Under those circumstances, I would still hold Dell, in fact I would be a buyer. A company which can successfully confront adversity, and remains nimble in the face of changing market conditions, is a much safer long term investment than a one-trick pony. But someone who invested in Dell because they believe MSD is a great guy, Dell's magic sales model can not be addressed in the market by any competitor, ever, and that Dell will therefore conquer the PC world might sell. Oh well... As I have said many times, I invest in companies because I think they will give me a good return. If I like the management, so much the better, but it has little to do with the potential value of the stock.