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

To: Elliot who wrote (58435)	4/18/1999 7:05:00 PM
From: American Spirit	Read Replies (1) \| Respond to of 97611

I don't know about it popping so much right away. They still have to come up with a new strategy, convince Wall Street they're focused in the right direction then find a dynamic new CEO with a history of turning dogs into dynamos. CPQ will eventually rise but buying in now is buying in a little blind. When a new CEO is announced then it should go up 10% or so. The real problem is that nobody can fix the disappearing margins on PC's and or make DELL and Gateway disappear. CPQ could continue to disappoint for awhile until they show us the money. Still, good news. A first step.

To: Elliot who wrote (58435)	4/18/1999 7:36:00 PM
From: Andreas	Read Replies (4) \| Respond to of 97611

To Elliot and Thread: Read between the lines!! I Just got off the phone with my dad. He's an old-time survivor of world war II who's been keeping an eye on cpq. And he made a few interesting observations. His points are these - "Be very carefull - I smell a rat! Earl Mason already has a new job as ceo at some non-computer company. Mason didn't get this job overnight. With the board approvals that are required at the new co. etc, you know he has been looking to leave cpq probably before he shot his mouth off in February. Furthermore, cpq board of directors have known about mason leaving for some time. Since when does a cfo leave without notice? Also, didn't Mason sell a bunch of cpq stock in february? Another clue that something was up. As for Pfeiffer - he will never work again. Furthermore, he doesn't want to work, particularly since he will never hold the position of ceo at a fortune 100 company again. So what happenned? I don't know. All I can do is guess after relying on 70 + years of experience dealing with all kinds of high ranking business people who in my view are not known for their honesty. And my guess is this - the pc business is not and never will be from this time forward, what everyone thinks or hope it will be." "Why not? and exactly what do you mean?", I asked. "Listen up son, I happened to be at Sam's today and earlier this week i was at Walmart - and as I walked around observing the customers, I asked myself - do they really think these people (3/4 of whom can't wait for their next paycheck, welfare check etc.) are going to buy a computer and become computer literate and start buying product on the internet?" " So what's your point Dad?" "My point son is this - a substantial portion of american society will never own a computer, let alone use a computer to surf the internet. For crying out loud. Have you looked at the average joe blow lately? He still can't tell you where kosovo is and you think he's going to teach himself/herself how to surf the internet? The market is beginning to be tapped out. You have seen the heyday of the pc market. And you will see pc companies starting to diversify product lines and strategical direction. CPQ is a good example. Those that do not diversify will die and while they're dying they will lower prices below costs in a sick, naive, last ditch effort to survive." "What's all of this got to do with Eckardt pfeiffer and mason?" I asked. "Son, don't you see? Pfeiffer and Mason already know this. They know the heyday of the pc is over. After all, how much money has ibm made recently on the pc segment of their business? Didn't the ceo of ibm suggest getting out of the pc business?" "Sure Dad, he did, but...." "But nothing, son. Don't give me your song and dance about Gerstner having sour grapes etc. That portion of society that has the initiative to own a pc already owns one. And those who cannot afford anything over $399 typically don't have what it takes to become serious computer literate surfers." "Well, nobody ever accused you Dad of being politically correct." "That's right son, but I'd rather be a rich realist than a politically correct pauper. And you can rest assured that both pfeiffer and mason are well aware of the pc's demise"