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

To: Mao II who wrote (57113)	4/12/1999 6:39:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

MII: Not to defend them - but a lot of industries get ravaged by price-wars. Especially when consumer demand is lower than expected. You have to decide do you give in, maintain your price and lose market share, or not? COMPAQ decided to maintain market share. In the short-term this hurts profits. But in the long-term it is essential. Eventually, something will have to give, but the bigger you are the better you can withstand the losses of battle to win the war. COMPAQ is in the low-end, low margin business as part of a strategy and its manufacturing clout will give it an edge. It might be nice to operate only in the high-end high margin products, as DELL claims it does, but DELL has a credibility problem with me even though it is much better at selling its spin to the market than COMPAQ is. About 25 p/e points better.