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Technology Stocks : COMPAQ - WHAT'S LIES AHEAD ?!? -- Ignore unavailable to you. Want to Upgrade?

To: Lbags who wrote (5)	2/13/1999 2:27:00 AM
From: GNB	Read Replies (2) \| Respond to of 17

Kevin- You're right on and my salty old baseball cap doesn't taste too bad. However, I must say that I have been waiting for some time for the momentum to shift over from DELL to COMPAQ?? I was fortunate (spell lucky) enough to sell out my long position in DELL recently at a handsome profit and plowed the proceeds into additional shares of CPQ this week at $42 s/s. As I indicated in a prior post, DELL is an outstanding company. However, it was a matter of time before CPQ refocused its efforts and expanded market share. The good news is that PC sales are expected to be strong thru 1999+. My understanding from the reports coming out today is that DELL's unit sales were strong but margins had to be cut to maintain market share. If this is true, DELL is now on Compaq's turf. That is to say, Compaq has the economies of scale necessary to survive a predatory pricing scheme. DELL will most assuradly remain a strong competitor and its stock will rebound ( probably sooner than later). However, I believe this short term situation with DELL and all the good news already out on Compaq will result in a nice pick up in CPQ stock prices. The key to successful investing is identifying fundamentally strong companies before the stock price has significantly appreciated. DELL had a strong run and is fully valued for the near term- now the "cattle" are running for the door ( and I'll be there waiting to relieve them of their DELL stock at firesale prices). Meanwhile, perhaps the momentum will now shift to COMPAQ.