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

To: Howard Feinstein who wrote (60227)	4/30/1999 10:32:00 PM
From: MTHONER	Read Replies (2) \| Respond to of 97611

Howie...What's your "opinion" on a CPQ-purchase here at $22.3125??? Whaddaya "think" the "down-side" could be???<g> Just curious...

To: Howard Feinstein who wrote (60227)	5/1/1999 6:12:00 AM
From: rupert1	Respond to of 97611

Howie: You can't "will" a stock to go higher! Maybe 11 million shares of COMPAQ were bought yesterday, maybe as much as 80 million in the week, maybe 200 million in the last two or three weeks. The buyers are not willing it to go higher, they are making a reasoned bet that it will, even if it goes lower first. They could have put their money in NETG or NETP or DELL or CSCO or in any one of thousands of other stocks. This is a major mess CPQ is in and every day it goes on they are losing market share to DELL Really! How do you know that? The market surveys published last week showed a market share loss of 2% for the entire year in 1998 when COMPAQ was struggling with inventory overhang and the acquisition of two large companies - Tandem and DEC. And that market share loss was in PC's, which COMPAQ predicted five years ago, would represent a decreasing proportion of its total revenues. And you are wrong to say the loss was to DELL. The loss was to DELL, IBM, HWP, GTW and the white boxmakers. Any company which holds a lead in a market will find it increasingly difficult to grow at all and inevitably faces market loss as competitors learn to be more efficient (see Intel). Size inhibits rates of growth (see DELL down from 55% grwoth to 30% last quarter). That is why companies diversify so they can maintain higher rates of overall growth. That is why COMPAQ is growing a services business faster than any other company, and gaining market share from competitors in other segments.

To: Howard Feinstein who wrote (60227)	5/1/1999 11:26:00 AM
From: zalesky	Respond to of 97611

To Feinstein: I never said this stock would be back to 40 or 50 at the end of the year. But then again, who would have dreamed it would go from 22 during the October Crash to 50 bucks in January?? My strategy is to dollar cost average down, get my basis to respectable levels and then see how things unfold. Once they appoint a new CEO this stock will POP at least 3 points. Major institutuions still have a lot of money tied up in this issue and are undoubtedly putting pressure on the Board to come up with a winner. Sure the road with CPQ is long and full of Potholes, but thats the best time to bet on a fallen star, when the light has dimmed somewhat. Anyway whose your bet for the DERBY??? Go CPQ, GO BABY!!!