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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Jill who wrote (20325)	4/11/1999 11:54:00 PM
From: t2	Read Replies (1) \| Respond to of 74651

Jill, Thanks for the words of caution. I would just do something like a day or 2 day trade for Compaq---not worth holding on to long term. Has to drop low enough on Monday. Normally when bad news gets released before the start of the trading day or during the day, i like to wait til the second day of trading for a buy. However, in this case the weekend was enough of a news digestion period that we may see some day trade opportunities. Compaq's Problem: They just got stuck between a "rock and a hard place". There was too much invested in the indirect sales model to try the Dell model. Just not a good position to be in. Same goes for HP and IBM, although IBM made up revenue in other areas. Dell had no retail channel and did not face the challenges Compaq did. I think Compaq should have sold under Compaq through the indirect channel--and have sold Digital branded computers directly to the customer--renamed "Digital Direct". Has a catchy name---which would have helped. For example in a store you would only have found Compaq branded computers while the Digitals could only be bought direct. IMHO, that is where they messed up.