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

To: Steven N who wrote (57947)	4/14/1999 9:08:00 PM
From: rupert1	Read Replies (2) \| Respond to of 97611

I do not have die-hard conviction. I have bought and sold COMPAQ more times than you have had hot dinners. I'm not trying to convince you of anything. If I could predict that it was going to the teens, like you say you can, I would sell it and buy it again. It sounds to me that you are steeling yourself to sell it tomorrow and you want me to argue you out of it. My advice is to do what will give you peace of mind. I will predict that whatever it does in the next few days or weeks, that within 4 months - 100% of analysts and guru journalists would have raised their estimates, 50% of analysts will have upgraded it, and the price will be at least 60% higher than what it is now. That is not to say you should not sell it now and come back later. Or sell it and buy something with better prospects. Don't buy or or hold it because you are familiar with it or like being on this thread. You could still feel part of the thread if you held 1% of your assets in CPQ. Good night. I do sleep sometime.

To: Steven N who wrote (57947)	4/15/1999 5:58:00 PM
From: rudedog	Read Replies (2) \| Respond to of 97611

Steven - This is the "buy low" portion of the "buy low sell high" equation. CPQ is the #1 PC vendor and the #2 computer vendor, and is priced way below everyone else in the sector. Unless you believe that the computer business is somehow a bad investment now (despite its having been about the best investment one could make over the last 10 years), then this would be a great time to buy for a long term core holding. There is some question about whether it will drop another few points or not before beginning its inevitable rise back to a reasonable value. That depends on how quickly CPQ can take steps to restore investor confidence in management. I am as disappointed as anyone in the current position of the company. I had a friend who had a 5k share holding in DELL in the early 90's. In early 1993, DELL encountered a number of business problems. Confidence in the "Boy Wonder" evaporated. Wisdom on the street was that DELL was dead meat. The stock price tumbled by nearly 50%. He felt about as depressed about his investment as many on this thread do now. He sold his DELL near the bottom and bought HWP - after all HWP was a solid well run company with none of the "management problems" of DELL. A year later, HP was lower than when he bought it, and DELL was on the start of its record run. So I guess the moral is, if you have faith in the fundamentals and market position of the company, a low stock price is an opportunity, not a punishment. If there is a management shakeup in CPQ and they make moves to restore confidence, I will be a buyer.