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

To: Chuzzlewit who wrote (50045)	2/26/1999 3:13:00 PM
From: robbie	Read Replies (3) \| Respond to of 97611

Chuzz, I partially agree with your post. The channel thing has been watched very closely since all the prior fiascos, all reports lately indicated that channel inventory was at the lowest levels in a long time. It's still too early to assume the channels are stuffed again, let's wait and hear the facts. Remember, DELL tanked when Niles stated that their quarter was soft near the end (Jan. for DELL). It now seems that wasn't a big deal, maybe this won't be either. I do think that if Compaq's sales are weak for Feb., we should be worried about DELL as well. Robbie (crash helmet on and chin strap buckled)

To: Chuzzlewit who wrote (50045)	2/27/1999 2:13:00 AM
From: Night Writer	Read Replies (1) \| Respond to of 97611

Chuzzlewit, Agree with you on the channel inventory observation for retail PC sales. However, where Compaq got into trouble last year was on business PC inventory problems. If analysts have these two channels confused this year, they have made a bad mistake. As I understand it, the retail PCs are easy to cleared out with sales in January. Not all retail buyers are that hot on having the latest technology versus a bargain. Business units were difficult to clear due to rapid advancements and higher cost. This was compounded by a rapid decrease in component prices. Newer better commercial PCs were less expensive then inventory setting in warehouses. Commercial buyers were not so willing to purchase older PCs without deep discounts that created a loss on each sale. The rapid price drop in component prices was a unique event. However, it is the commercial product inventory that needs to be closely monitored not the retail units. NW