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

To: Elwood P. Dowd who wrote (48256)	2/16/1999 6:39:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

El: I slept in until 10.30 so missed the first part. It is more like an Exhibition. They have all the equipment set up in the hotel with demonstrations. Apart from the very strong emphasis given by EP on the Internet - I have heard nothing new. However, the explanation is very impressive and one would get the impression that CPQ was not mainly a PC maker but a big player in IT, Telecommunciations, Networks, as well as avant garde in the use of PC, (he just mentioned the hand held in passing) the use of quick internet and broadband modem buttons, digital cameras etc etc. He s also emphasis the delivery of Alpha and COMPAQS power in large servers and storage. EP answering questions. he saying CPQ very interested in playign a leading role in networks and is studying the field. Q. Why sell off a part of AV? A. We wi;; take it to market wth IPO. Lot of fianncial leverage given the valuation of internent stocks. We have not put a value on AV but there is a value on Shopping.com. We will need $2 billion to get it to become a leadign comapny - where do you get that from? We will raise it in the market. No specific forecast as to time - we will develop a strategy.

To: Elwood P. Dowd who wrote (48256)	2/16/1999 6:49:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

EP Quetions going on;' Q Because of YK2 large accounts wll stop buying in July and medium will stop in 4th quarter - there will be a melt-down. A. Lots of theories. Small medium business worldwide needs equipment to add on or to replace for YK2 together with what we think will be a very strong seasonal demand in second quarter. The lower costs of PC will fuel this. He is talkign about the "free PC" in Calfornia. 500,000 wanted the free PC (Presarios) even though there were only 10,000 available. Compaq sold these computers. He thinks this is a huge market for CPQ. Nothing is free. (Made a joke and got a laugh). Q. Customer choice model - is it contradictory with channel network? A. Complements the channel distribution. Digital and Tandem products need us to be flexible.

To: Elwood P. Dowd who wrote (48256)	2/16/1999 6:55:00 AM
From: rupert1	Read Replies (2) \| Respond to of 97611

Questions. E-P says, traditional model of business is fundamentally changing because of the internet. We must be involved. He refers again to the "free" offers and extremely low-cost offers through the internet. Nothing is free and we will see how far they will go. Q. Encryption? A. Trying to accommodate demands of governments in Europe. Q. About new products A. Lots of new appliances. Q. Networking A. We need it. Q. Internet stock prices? A. Revolution which is changing the world. Can't use the metrics of what we are used to with the future value. Like the PC when it came it created new comapnies a new industry. That was nothing comapred with what is happening with the Internet. The leader in that field wll be enornmously creative in new ways of doing everything. They need a completly different valuation. They are not about earnings, but a jokeying for position. Who will be the leader of the Internet area - thats what matters. Who will be the new Microsoft. That is oen of the reasons that COMPAQ is one of the few major corporations that has made a major investments and is planning to do more. END OF QUESTIONS