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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (119208)	4/20/1999 10:12:00 AM
From: Mohan Marette	Respond to of 176387

CPQ's daunting task -Hey CPQ stay away from 'our' executives,told you to get Chainsaw Al didn't I? Ian: Here is more on the subject:-- ================== "(Investors) should take a wait-and-see attitude, because Compaq is now being lead by a committee," said Lou Mazzucchelli of the Gerard Klauer Mattison securities firm in New York. Some analysts said Compaq should make radical changes in the way it makes and sells computers to big corporate accounts, including switching almost completely to the direct-sales model pioneered by Dell Computer Corp. "On the corporate side, Dell's direct model has taken over," said Danny Lam of Fisher-Holstein Inc., an industry research group. "I don't see much way out but to go direct." That would be a profound strategic and cultural change from Compaq's traditional system of relying on resellers to sell and install its systems in the offices of big corporate accounts. Rosen reiterated Compaq's support of the so-called indirect channel even while the company tries to expand its direct business. ........ .................. Analysts said the executive committee, with Rosen acting as interim CEO, faces daunting challenges in addition to responding to growing acceptance of the direct model. Art Russell of the Edward Jones securities company in St. Louis said Compaq is still struggling to combine Digital Equipment Corp.'s product-ordering and inventory systems with its own. Two systems delay or distort the information from customers that Compaq executives need to track sales and forecast demand, Russell said. Moreover, Compaq, which helped launch the market for sub-$1,000 PCs, is not efficient enough to compete with low-cost computer makers like eMachines Inc., which is rapidly gaining market share with PCs selling for $500 or less, said Lam of Fisher-Holstein. Rosen said Compaq has begun a worldwide search for a new CEO. In the inevitable speculation about who will replace Pfeiffer, the names of Dell Vice Chairman Kevin Rollins and Chief Financial Officer Tom Meredith were offered by analysts. "I'd be trying to get ahold of Rollins," said Don Young of Merrill Lynch. "If I had my druthers, I'd have Tom Meredith," added Russell. Dell, through a spokesman, declined to comment on the speculation. austin360.com --------------------------------------------------------------------------------