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

To: Windseye who wrote (37761)	11/29/1998 2:27:00 PM
From: Kenya AA	Respond to of 97611

Hi Windseye. I'm not too worried about Q4. I think what's going to do it for CPQ in Q4 will be consumer sales in the sub-$1,000 machines mainly to first time buyers who aren't going to be buying on the web. There seems to be general agreement on the Street that X-mas sales of low cost PCs will do very well. Also, there are some who say that PC prices may be starting to bottom out. Many people may start saying, "I've waited to buy all the way from $2,000 to $500. If I wait any more, I'm only gonna save another $100 or so. Not worth the wait." Also, everyone knows that Q4 '97 was the last "stuffed" quarter so I think they'll go easy on CPQ for this Q4 comparison. I think that CPQ will get its act together on the web by Q2 and I think its stock price will start to reflect that before the end of this quarter. The stock market is a forward looking mechanism. CPQ has easy comps for Q1, 2, and 3 next year. Dell, on the other hand, is going to have tough comps. I can hear the wheels a turnin' in the minds of the buysiders. I totally agree with CPQ's "have it your way" strategy. I'm wondering why they haven't pushed it more in their ads. At the end of their TV ads it always says that you can buy by phone, internet or retailer but it's almost like an aside. They should build the entire ad around that concept. K PS: I've often heard that many large corporations have a department whose job it is to go out there (especiallly on the internet) and find out what the public as well as competitors are saying about them. I hope CPQ has such a dep't and that they're reading this thread. I've read many good ideas and comments here that could help CPQ. Hey, even EP started to lighten up after El kept calling him "Mr. Personality".