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

To: rupert1 who wrote (57442)	4/12/1999 5:40:00 PM
From: Mao II	Read Replies (1) \| Respond to of 97611

victor & thread: Dont think this little tidbit has been posted. M2 Hewlett-Packard PC business on track PALO ALTO, Calif., April 12 (Reuters) - Hewlett-Packard Co. said Monday its PC business is growing revenues and profits and not seeing the weakness some competitors are reporting. ''We have delivered growth that is on plan and profits that are above plan,'' Duane Zitzner, president of HP Computing Products said in a statement. ''Our results since the middle of last year to this point in the quarter validate our direction in all our large regional markets of the world.'' Hewlett-Packard said it made the statement in response to questions raised following signs of weakness in some of its competitors' businesses. On Friday, Compaq Computer Corp. (NYSE:CPQ - news), the world's largest personal computer maker, said its first quarter profits would be less than half of what Wall Street had forecast. Hewlett-Packard said Monday that it has been successful with its strategy of balancing market-share growth and profitability, while expanding the number of channels through which consumers can sell its products.

To: rupert1 who wrote (57442)	4/12/1999 5:42:00 PM
From: Michael Kucera	Respond to of 97611

victor, I believe the Street is asking: When will you show me the money? With the current management at CPQ I would be surprised if the stock made it to 35 be year end. CFO Mason (or EP, they are equally incompetent) must go. Would you buy MORE cpq today if all the earnings estimates would be taken down 50% qaurter after quarter? that is what just happened for all the new cpq investors this quarter, even though management said all was ok just 15 weeks ago! But since it looks like they all sold their shares in the 40's they probably don't care where the stock trades at. Any normal company would announce massive changes in management today following this 22% one-day haircut.can't wait to sell on the dead-cat bounce.

To: rupert1 who wrote (57442)	4/12/1999 5:45:00 PM
From: PCSS	Read Replies (2) \| Respond to of 97611

victor, <the market is in a state of shock> let me add a state of confusion .... all day the analysts were trying to explain CPQ's shortfall and all sorts of different things were espoused .. one in particular was that the channel confusion caused CPQ MUCH problems but that CPQ has in the last weeks seems to have addressed this and that things have gotten better. Michael

To: rupert1 who wrote (57442)	4/12/1999 7:12:00 PM
From: Frederick Smart	Respond to of 97611

Reality Maybe Now....... But Real Value IS in the Future...... For that's where thought and vision are focused. And the energy of life is risk....... Not many people like risk, especially when, having fallen to the bottom of the valley they are tired of being told by all the valley citizens that they are in the valley. Duh......so convinced they sell themselves into buying an easy ticket down the river just to leave the valley. I love it when the marketplace finds itself in an odd state where the herd/crowd was doodling too far away from the exit chute. So one cowboy jumps off the fence, declares a problem, spits some chew in the faces of the cattle, grabs his whips and says "outta here......hey yaaaaa!!!" Other dudes jumb off other fences around the corral and then it becomes great fun. The crowd of cattle is simply dazed, dumb and fearful. Even the most liquid markets can only handle so much stock on a given day. Give me a break....111.3 million shares of Compaq traded today, close to 7% of the total outstanding. So we have to surmise that with these herd analysts wrong - again - nobody wanted to be caught in their cowboy boots with mud on them for fear of being WRONG, period. With other stocks flying and the market rebounding, the logic which supported owning Compaq shorterm was turned on its head. But, what's the point?? Compaq has been selling off for weeks on just this reality. There were those that KNEW about this ALL along. The analysts were coddling the bulls instead of being where they should have been all along - in the trenches with Compaq's clients, employees, etc. You can bet the street, the pros, the deep pockets, the longterm players were there to assist in dehorning and castrating each of these poor cattle as they passed through the chute today on the way to the slaughterhouse. These spasms of illogic don't happen that often, and I'm not going to say the worst is over for Compaq for a restest of the lows is in order. But here you have a company that's being labled a simple box vendor. Even as it has a ton of assets and imbedded core strengths, it's being clipped because "low-end" PC phenomenon is becoming more and more widespread. The era of the PC is fading, but that's does not mean that Compaq's future will fade with it. We are moving fast toward a thin browser world where bandwidth is KING, servers WILL be the foundation for future apps and individuals, NOT corporations will drive these new service cars that Compaq and its organization can help build. This is not unlike what companies like Nokia went through when analog sales slowed down as per unit prices. This just set the stage for the next BIG wave, digital cellular. That run went from $15 to $150+ bucks for Nokia. Compaq will have to adapt to an app services revenue paradigm going forward. The days of the "boxed fat lunch" are over. Compaq's future is in the enterprise and their investments in this area will pay off. The infrastructure of the internet is being restructured along directory technologies and Compaq is leading the charge in this area. They've partnered with Novell and the game is just in the early stages. This is a really rich environment to be in and I can see Compaq is aggressive taking a leadership roll in this area. Again, we are fast moving toward a server-centric world. Object-oriented technologies and directories will make bandwidth utlilization "smarter" - where the internet works FOR us in open cross-platform environments, not the other way around in closed environments. HP, IBM, Lucent and everyone else.....except proprietary Micosoft is singing this tune. Cross platform messaging, unified messaging, the convergence of telecom services in a high bandwidth, high throughput environment will rule the days ahead. Compaq has a tremendous opportunity to become the leading enterprise partner of choice as IP CONVERGENCE gathers steam. Longer term, this little dip will be an insignificant hiccup along the road to greater accomplishments as Compaq starts to claim more and more power and responsibility to itself in the world of IP - away from it's co-dependent relationship with Microsoft. The "end game" is the end user's trust. This trust is wrapped up inside messages, converations and data in these expanding rivers of rich IP data. The future rests with INDIVIDUALS. I am looking forward to seeing Compaq flex it's OWN muscles as it will be forced to open up more and more to its clients - right to the little engineer tucked somewhere in the bowels of a company - assisting him/her as they try to make sense of this topsy-turvy upsidedown world IP revolution. Compaq is embracing directory technologies NOW and as a result has a greater chance to lock in relationships with "the individual" while leaving Dell and others in the dust. GO!! PS - if you don't have a clue about where the REAL future of the internet resides, I suggest you take another look at www.novell.com. PSS - and if you don't have a clue about all this talk about "the individual" may I suggest you get a ticket on The Cluetrain - www.cluetrain.com. GO!!!