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

To: jim kelley who wrote (40171)	12/16/1998 2:59:00 AM
From: rudedog	Respond to of 97611

Jim - CPQ will be in the range of .36 to .42, maybe higher. What's the point in talking about a silly earnings number? What would happen to CPQ stock if Intel declared bankruptcy and quit shipping chips? I'm not much into science fiction, certainly not into writing it. I think that your analysis of cash flow at CPQ is interesting, but from my analysis they are at better than twice the cash position they need to be 'healthy' by most accounting standards. Everything I have heard indicates that the layoffs are on target, with CPQ moving prudently to preserve as much of the DEC assets as they can while cutting away inefficiencies. They are not whacking just to make the street happy, which is a good long term play. Virtually everyone I have talked to at CPQ believes they are well ahead of plan. The customers and resellers can't get product because it's sold before it gets out of the plant. There is no reason to assume anything but good results for the next quarter at least. My comment on DELL was a lot more on target, I think - it is much more likely that DELL will only do 'OK' for their next quarter, and I think the street suspects that. 'OK' is not good enough for DELL, but it's great for CPQ. Just a question of expectations and stock price momentum, but I am a lot more concerned about my DELL investment than my CPQ at the moment.