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

To: robbie who wrote (56502)	4/10/1999 12:11:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

robbie: How could the be so inept? Maybe the YK2 bug hit their SAP software early.

To: robbie who wrote (56502)	4/10/1999 11:42:00 AM
From: Chuzzlewit	Respond to of 97611

Good morning Robbie, I think they are suffering from denial. My guess is that having pushed lots of inventory into the channel last quarter, and then running around congratulating themselves about how smart they were in taking market share, they couldn't bring themselves to admit that they had been dellusional. But as the evidence continue to mount, and as product kept regurgitating back out of the channels they had no choice. I think the evidence is overwhelming that they are inept. They haven't come to grips with the notion that they are competing in a commodity, and the only way you make money in a commodity is by emphasizing efficiency over branding, and Compaq has simply not recognized that reality. By the way, that was exactly how Compaq did IBM in over a dozen years ago! They also haven't figured out that the decision of going to a low cost processor hurt them badly because once again they deluded themselves into believing that there would be little cannibalization of higher end sales. But the genie is out of the bottle now, and they can't stuff him back in. I see continuing problems at CPQ. TTFN, CTC