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

To: Captain Jack who wrote (61820)	5/20/1999 11:54:00 PM
From: rudedog	Read Replies (3) \| Respond to of 97611

One point that many on both the DELL and CPQ threads have missed is that DELL has 2 1/2 times CPQ's market cap on half of CPQ's sales. It's no wonder that the street expects perfect performance from DELL. CPQ by rights ought to be able to screw up for a while without affecting stock price. If CPQ had the same ratio as DELL, CPQ would be at 150. Something to ponder, I guess. Also gives me a gut feel for the potential of the two stocks. If we assume that CPQ was reasonable at 50, then DELL would have to grow to more than twice its current revenue at the same share price, given equal expectations. At their current rate of growth that would suggest stock prices in the 40's for 18 months... a scenario that would leave many DELL investors cold. I don't think that will actually happen, but I could see DELL still in the 40's at year end.

To: Captain Jack who wrote (61820)	5/21/1999 10:56:00 AM
From: John Koligman	Respond to of 97611

Captain - Hard to get a feel for what's going on internally right now. It's obvious that CPQ's reporting systems have been in disarray due to the merger activity, so management is slow in getting the info they need. Guess we have to trust that Rosen will do the right thing and either warn or put anxiety to rest when he's got the info. Dell is a special case as it has been the 'momo stock' from heaven, and the slightest chink in it's results is very bad news. Watch out if they actually 'miss' a quarter. As I've mentioned before, I'm surprised that the majors have let Dell run roughshod over them for this long, I think the party might be ending. We shall see. Regards, John