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

To: rupert1 who wrote (61553)	5/18/1999 11:32:00 AM
From: DRRISK	Respond to of 97611

Victor, The reason why CPQ is such a good buy is that they are evolving despite the real pain into more then just a box company. I would not want to be in that business as the boxes become more and more commoditized. CPQ by acquiring the businesses that it has will going forward excel because their revenue growth will not be marginalized away in the "Box maker industry". It is why you will see Dell's sun setting and CPQ's sun rising, IMHO. The TA for CPQ is very bullish. DrRisk

To: rupert1 who wrote (61553)	5/18/1999 11:33:00 AM
From: rudedog	Read Replies (2) \| Respond to of 97611

Victor - I believe that service is about 30% margin but storage is closer to 45%. The revenue numbers currently are about $6.5B for service and as best I can determine, about $6B for storage, yielding about $2B gross profit from Services and $2.7B gross profit from storage. So given an industry growth rate of 30% for storage, and a target of 15% for services, I would expect storage gross profit at $7.7B in 2002, and services gross profit at $3B, if they grow with the market.