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

To: uu who wrote (38699)	12/4/1998 6:08:00 PM
From: JRI	Respond to of 97611

Addi: I hold Dell and Compaq (a lot more Dell than Compaq) and like them both here... A couple pts.: (1) Book value is pretty irrelevant...especially when talking about tech stocks...Do you honestly believe either one of these companies is going to have to liquidate anytime soon? (2) If you look at PEG (Price to forward growth rate) you will get a meaningful comparison.... (3) If you want to continue to use past PE, be fair, Dell has grow earnings (at a rate) at or better than its past PE for much of the last 8 years.....quoting (comparing) past PE's without looking at the growth that accompanied it is pretty meaningless, IMO... (4) I suggest you look at ROIC..the "big boys" who understand tech see this as far more meaningful... There is more, but that's enough to get my point across... Not trying to be annoying, just trying to give you food for thought....One last thought: Don't look at it as an either/or (either Dell or Compaq)...both can be successful going forward, IMO, if they stick to their strengths and execution....a better comparison would be Compaq vs HP or Dell vs. Gateway (more similar models)...Good luck with your investing..