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

To: Jason Hall who wrote (34118)	10/7/1998 6:05:00 PM
From: rudedog	Respond to of 97611

Jason - I think that the Houston MFG cuts have all been made - they shut down 2 mfg facilities earlier this year. One will be re-tooled to house the 'co-manufacturing' projects that give select channel partners the opportunity to do BTO with a parts feed directly from CPQ's lines, and I think the other is being converted to do high volume consumer products. There has been a trend to outsource subassemblies to Asia for a while now, at least since 1994, which has allowed CPQ to greatly increase output in Houston without building additional mfg facilities. I would expect that trend to continue.