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

To: rudedog who wrote (37833)	11/29/1998 9:22:00 PM
From: Loki	Respond to of 97611

rudedog...CPQ was working to a very nice net profit even before the Q4 '97. One of the reasons I invested in CPQ was their high margin and the room for more efficiencies (as Dell), which I thought would improve those margins or give a competitive advantage in a price war. DEC I believe is a good long term strategic acquisition that was undervalued due to its inefficiencies. I expect DEC to drag down the net profit, near term. Can you give me an idea as to the potential that DEC would have if run efficiently? .....APPROX. NET PROFIT % LAST 5-6 Quarters..... DELL...7.6%-8% - 6Q's GTW....4.1% - 5Q's of 6Q's IBM....7.2% - 5Q's of 6Q's HWP....6.8% - 6Q's If I compare CPQ to DELL and IBM a 7% net profit in Q4 '98 (after DEC acquisition) is good. Thanks for your insight. Loki