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

To: Lynn who wrote (41325)	12/27/1998 8:48:00 AM
From: Pruguy	Respond to of 97611

i would guess this is to pick up some peripheral business from dell customers. sounds as if cpq has dell in its sights more than the others. I don't think MD and EP are golfing buddies

To: Lynn who wrote (41325)	12/27/1998 11:50:00 AM
From: Richie	Read Replies (2) \| Respond to of 97611

Lynn, I noticed the Dell names also.... the only thing I can think of is quick cash if DELL wants the domain name. I recall CPQ paying something like 3MM to some guy who had registered the altavista domain. RichieH

To: Lynn who wrote (41325)	12/27/1998 12:38:00 PM
From: Steven N	Respond to of 97611

From our own AltaVista!!!!!!! Westell Technologies: For Aggressive Investors Only Provided by Individual Investor Cable companies have captured investor attention over the last few quarters, with their rapid entry into the world of Internet access through the use of high speed cable modems. But phone companies, with their xDSL (Digital Subscriber Line) technology, will probably entice investors in the quarters to come. Following a highly-publicized service roll out by several Regional Bell Operating Companies (RBOCs) earlier this year, the computer industry took a decisive step toward broad-based adoption of xDSL technology. Last month, Dell Computer (NASDAQ: DELL) and Compaq Computer (NYSE: CPQ) said they would begin offering, as an optional add-on feature, high-speed ADSL-based modems in new models of their personal computers (ADSL, Asymmetric Digital Subscriber Line, is a version of xDSL). To profit from the trend, many Wall Street analysts will become bullish on technology vendors that derive a substantial part of their revenue from manufacturing xDSL-based equipment. We're inclined to disagree. Instead, we direct investors' attention to large data and telecommunications equipment manufacturers, such as Cisco Systems (NASDAQ: CSCO), Motorola (NYSE: MOT) and 3Com (NASDAQ: COMS), whose xDSL revenue are non-core. The Problems with Pure-Play xDSL Vendors There are two reasons why we advise against pure-play xDSL vendors. First, DSL may never catch up in the race to overtake cable modems. Although it is far too early to determine a winner in this race, ADSL is already lagging behind. According to recent studies conducted by the consulting firm Strategis Group, by 2003, cable modems will be a predominant medium delivering high-speed Internet access to some 6.2 million homes in the U.S., compared to xDSL that will facilitate fast Internet connection for 2.9 million homes. The second problem is fierce competition between ADSL technology providers. Vendors are aggressively pricing ADSL modems and other systems (sometimes below cost) in order to capture market share. The brutal price war has already claimed casualties. PairGain Technologies (NASDAQ: PAIR), for example, recently said its fourth quarter results would be below expectations because one of its closest competitors, Adtran (NASDAQ: ADTN), is taking away business through daring price cuts. Westell Technologies For more aggressive investors who would like test their fortunes on an ADSL pure-play, we recommend Westell Technologies (NASDAQ: WSTL). Some industry experts, such as Joel Achramowicz, an analyst with Preferred Capital Markets, believe that the key ingredients for success within the ADSL technology sector are strategic partnerships, distribution channels, and manufacturing. That is exactly what Westell brings to the table. Westell, which makes a range of digital and analog products used by telcos to deliver services primarily over existing copper telephone wires, enjoys close ties with several telecommunications equipment manufacturers, including Motorola and Lucent Technologies (NYSE: LU). Westell also boasts a reputable customer base, which includes among others, RBOCs and GTE (NYSE: GTE). Bottom Line: Achramowicz recently upgraded shares of Westell to a Buy with the price target of $10. The stock was recently quoted at $4.63. Achramowicz noted in his report that "Westell is significantly undervalued at this juncture. The company's position with Bell Atlantic's (BA) major ADSL deployment will represent growth in CY99 as that company continues to ramp up subscribers at a geometrical rate." Analyst: Alex Yakirevich There's more where this came from. For great daily stock and industry analysis visit Individual Investor Online.

To: Lynn who wrote (41325)	12/27/1998 12:39:00 PM
From: Kenya AA	Read Replies (1) \| Respond to of 97611

Hi Lynn: Thinking about changing your handle to "Riddler"?? <gggggg> Better watch out for those lightning bolts! Maybe "NJ" doesn't stand for "New Jersey" and maybe "Colorado" is a code name for a new product or other venture. As for the "DELL" stuff, I agree with the others - CPQ's just trying to bust DELL's ass. K PS: Sent our stuff to Gary - haven't heard back yet, but he's a busy guy. Have corresponded with him many times so I'm sure we'll hear back.