Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: rupert1 who wrote (48311)	2/16/1999 10:44:00 AM
From: PCSS	Read Replies (2) \| Respond to of 97611

I wouldn't be surprised to see 45-46 today ! The normal trading pattern for CPQ has been (1) an early BIG takeoff, then (2) a 50+% pullback from the takeoff in 45min to 1 hr, then (3) slow activity with a narrow trading range the rest of the day. Today, CPQ tookoff, lost about 25% of its gain, and is now 44sh on about 3.9 mil shares. For a good day (1) look for continued ACTIVE trading (i.e. - 6 Mil shares by noon would be great and 8.5 by 1:30pm wouldn't hurt) and (2) increasing day highs. Mid-day stagnation (43 1/2 ish) in NOT good. As well, it is my belief that the DELL rally is somewhat false and that the big trades will be on the downside as today progresses, if that happens AND the big UPtick trades come to CPQ watch for 46+ later. JMG Michael

To: rupert1 who wrote (48311)	2/16/1999 10:59:00 AM
From: QuentR	Respond to of 97611

To All: Dell is in trouble and unfortunately CPQ is still tied to Dell so IMHO we will be back in the mid 42s by tomorrow. Dell is way over priced and it will take some time for Dell investors to accept the fact that the stock has to come back to reality. One thing good about CPQ is that it is not over valued, our day is coming. Also some of the things we have been worried about may become advantages. A big company like compaq has been going price to price with Dell to keep up market place. A big healthy company will take some short term losses to stay number 1. Component prices have been decreacing, Dell's no inventory buildup, production, and sales approach has worked well. Compaq has done somne restructuring taken some losses on market conditions and competition, but is a healthy company. Market conditions are changing. Asia can no longer reduce component prices. Dell can not easily change component and marketing strategy. Compaq still has its distribtuion channels in place and is close to matching Dell on internet and direct sales. The tide is turning. If Dell sales and profits are down, Compaq has out lasted them while reducing production costs. What happens when component prices go up? Large inventories channel stuffing do not look so bad anymore. If component prices go up Dell prices will be forced up. Companies like Compaq & IBM that are ready will have good profits, lower priced products and will be in the driver seat. As we approach Y2K there will be more pressure to upgrade, surge of more sales. The future looks good, what do you think? Are we turning the corner on the box maker advantage?