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 (49929)	2/26/1999 11:28:00 AM
From: Jimbo Cobb	Respond to of 97611

This is the selling climax victor...don't use words like that or you will get Kenya all hot and bothered again.... jajajajajajajaja Jimbo.

To: rupert1 who wrote (49929)	2/26/1999 11:53:00 AM
From: Elwood P. Dowd	Respond to of 97611

victor... that's what everyone said when the estimate was lowered to 2 cents a 2-3 quarters ago....that "now CPQ could exceed earnings.' CPQ will be lucky to see 40 again by 4/1. El

To: rupert1 who wrote (49929)	2/26/1999 12:37:00 PM
From: trouthead	Read Replies (2) \| Respond to of 97611

I have a theory on todays news and the action. But I should preface it with a guess on my part that the slow down in the small to mid business sales is due to the channel friction caused by CPQ selling direct. Add that to the news of the halting of distributing through other internet sellers and a dim picture, if you squint, comes into a blurry relief. The market for selling and distributing pc's has changed. As the price of the pc has been slashed so has the margin. No company will be able to afford the VAR middleman markup that currently exists in the channel so CPQ is moving more and more to a direct seller strategy in their pc business. CPQ is just biting the bullet. Taking it in the A$# now to save future revenue on pc's. Which in light of their other moves, DEC, Tandem will become a smaller part of their revenue stream as they move into more of an Enterprise computing and Services company. The AV card is on the one hand a bonus and on the other a drag. A drag because it doesn't fit with the new model. What is CPQ today, too many irons in the fire. CPQ as ecommerce company? No way. Bonus because of how hot the inet market is. I think they are planning to mold AV with acquisitions into a solo unit that can be ipo'ed with cpq maintaining a majority share and then let it run on it's own. Of course every pc CPQ sells will take you to AV, though there is no guarantee they will stay there. But once AV is spun off I don't see it as taking a major portion of CPQ's energy. They will try to benefit from it and use it in the future as a small piece of the enterpise/services company they are becoming. The internet will be more and more a part of every companies strategy and hopefully CPQ will be able to use what is going on at AV to enhance their ability to attract enterprise and services revenue by offering companies total solutions. And further more, blah blah blah. Thank you for listening. jb