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


To: rudedog who wrote (41416)12/28/1998 3:12:00 PM
From: jim kelley  Read Replies (3) | Respond to of 97611
 
Dog,

Re:" Look at consumer products. CPQ has shown the ability to make and sell PCs at a price more than 10% under DELL, yet make a 20% or better margin. "

It is easy to claim that CPQ is a more cost efficient manufacturer but the published numbers say otherwise.

For the 9 months ending 9/30/98 and the 9/30/98 quarter we have:

Gross Margin: 20 23.5

Operating Expenses: 39 23.1

So CPQ net profit margin was -17.7% and +1.8% respectively.