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

To: trouthead who wrote (49958)	2/26/1999 12:54:00 PM
From: Bretsky	Read Replies (3) \| Respond to of 97611

Nice comments; I'm in sales. I work for a VAR who is CPQ sales and service authorized. I'm not working today and I'd like to make a few comments. I don't see good things happening for CPQ for two main reasons 1. They will lose share in the channel to HP. I know in theory businesses do not want to pay a VAR markup for the PC, but most small to mid sized businesses do not have a person technical enough to set the PC's up on the network. DO YOU THINK VAR'S will set up and configure PC's purchased from Compaq Direct....................NO WAY. It's wishful thinking on Compaq's part, but I'm not installing any equipment purchased direct. The channel is now Pushing HP much more than Compaq because we do not want to deal with this driect BS. If you go to Compaq's website, it is not even user friendly to VAR's anymore. CPQ has also really limited the choices of PC's Value Added Resellers can spec out for their end user. Current customers who depend on experts for servicing also have loyalty and some do not buy direct.....MEANWHILE, the channel recommends more HP's because they are loyal. 2. The second reason is simpler; DELL will continue to dominate direct. Sure, I won't argue if you tell me the stock is overpriced, but they are CLEARLY SUCCESSFUL where CPQ FAILS; that is; having a business model which is organized enough to dominate. Undoubtedly, DELL is superior to CPQ as an online reseller.

To: trouthead who wrote (49958)	2/26/1999 12:55:00 PM
From: Roads End	Respond to of 97611

JB..I think you over estimate the value of AV. CPQ has already spent close to a billion $ for shopping.com and Zip2. It is estimated AV will only have a market cap of 2 billion. EP wasn't even astute enough to realize how much he was paying for shopping.com because he couldn't figure something as simple as how many damn shares they had outstanding. (just one more screw up) AV is going be relegated to double A ball as a wanta be to the the two major league giants AOL and Yahoo. Once again management is late to the party. At the party Yahoo is schmoozing with TWX. Guess who TWX would choose to hang with? Certainly not a bunch of losers that can't get it right. Steve