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

To: rudedog who wrote (51485)	3/4/1999 9:23:00 AM
From: JRI	Respond to of 97611

Rudedog- A couple of us kicked around the possibility of IBM acquiring Gateway...with Chuzz (and, most likely, rightly so) seeing an IBM/Gateway as the biggest threat to Dell going forward.. (This is not to diminish Compaq's competitive threat..but it appears that the lines are pretty clearly drawn in that battle [Dell/Compaq], with both companies choosing their battles accordingly).. The Dell move looks to lock out Gateway, or at least make any sort of Gateway/IBM alliance unlikely or delayed...That alone makes it (the alliance) valuable for Dell (as a defensive play).. Gertsner is a big ROI guy....I do not think he is wedded to the idea that IBM must produce PC's because of their history....I believe he is open to cutting back production to selected models if IBM can support its service model just as well (if not better, and more profitably) thru Dell taking some of the production off their hands... This alliance will give IBM a chance to see if this can be possible...I'm betting this is the beginning of a deeper partnership... Looks to me like we now have an oligopoly in the corporate market, with Dell/IBM and Compaq being the two real heavyweights...and HP becoming the real loser, and clear 3rd choice.......and all others being like that loser (Peter McNeeley?) that fought that Tyson a couple years back....