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

To: rupert1 who wrote (61238)	5/13/1999 9:03:00 AM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

To: rupert1 who wrote (61238)	5/13/1999 9:15:00 AM
From: DRRISK	Respond to of 97611

Vic, Very well put I know companies that have built into their charters that all they will use is CPQ servers and Disaster Recovery Services. Gerstner is worried about the fact that CPQ kicked IBM'S ass once and hopefully will again. AV is a sleeping giant and what CPQ has to do is unlock the chains. What an asset that has gone undeveloped. DrRisk long

To: rupert1 who wrote (61238)	5/13/1999 11:04:00 AM
From: John Koligman	Respond to of 97611

Hello Victor IBM's stock price did continue dropping a bit once Gerstner signed on. The recovery process was also a long one. Gerstner was criticized during his first years for not espousing a 'vision' for IBM. His initial moves were to shore up IBM financially (8 billion dollar writeoff, massive layoffs). The vision statements began appearing a couple years into his tenure. Many high level managers were replaced over a fairly short period of time, the BOD was revamped, along with advertising. Things also started going IBM's way due to the internet and continued strength in the mainframe biz. If CPQ's recovery takes a similar path (and I'm not saying that it will), the process will take time. Also, I've mentioned it before, but I think CPQ has a harder road ahead than IBM did simply because IBM had a cash cow business (mainframes) that kept it in the game. That said, IBM shares were cheaper when LVG signed on than CPQ's today. IBM got down to a split adjusted 20 bucks a share at the low... Now a 12 bagger if one bought and held. As for Gerstner, I remember articles of the time touting replacements, some were IBM internal managers like Ellen Hancock and Nick Donofrio, external folks on the list were John Scully of Apple!!!! and Larry Bossidy, now at Allied Signal. I think Ross Perot's name was also bandied about by some <gggg>... s