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 -----Original Message-----
From:   HP-3000 Systems Discussion [mailto:[log in to unmask]]  On Behalf
Of Glenn Koster
Sent:   Monday, September 25, 2000 2:24 PM
To:     [log in to unmask]
Subject:        Re: HP World and Superdome

Greg Stigers asked:
>Also, has the Superdome announcement influenced analysts on Wall Street?

Ron Seybold replied:
> If stock price is any measure, no. HP closed at a new low for this
> year ($95) just nine days after Superdome was announced.

I have to believe that failure of the market to reverse the downward trend
in HP's stock is the result of several factors:

1.  HP's verbal commitment to bite off more than it can chew with the PWH
consulting group.  HP's services group has been growing great guns in recent
months and years.  However, to attempt to swallow something as large as this
group is may be too much.  It's tough to come up for air when your windpipe
is clogged with another company's refuse.

2.  The delays in the IA-64 architecture.  How long have we been hearing
about this now?  How long yet before it becomes a marketable reality?  How
much of a bite will HP take for contributing to the design but not obtaining
any royalties or competitive advantages because of it?

3.  The diversity of HP's product offerings with no substantive plan in
place to market them in a cohesive manner.  HP-UX, Linux, Windows 2000,
Windows NT, MPE/iX...  All offerings on different and diverse hardware with
nothing but a Band-Aid to hold many of them together in some situations.

4.  The downward trend of the PC market in general (since so much of HP's
profits now come from the PC and PC attachable devices.  By "attachable
devices, I am referring not just to peripheral devices, but a whole host of
product offerings that are dedicated to the PC market.  For example, I don't
classify HP's digital cameras as a PC-peripheral, but it can indeed be
attached to a PC.  This market is being led by Intel - in a downward spiral.

5.  The lack of ingenuity on HP's part to really innovate new products in
the printer arena.  Instead, they have introduced low-cost, low-margin
products for the home consumer market.  They should be leading the pack in
developing new and innovative ideas instead of playing "me-too" in the home
game.

6.  The HP / Agilent split and associated costs that are still showing up on
the bottom line of HP.

7.  The Agilent spin-off negativity.  Let's face it, HP split Agilent off -
and it hasn't done so well.  So, the wall street analysts are still making
the negative leap back to affect HP.

It was inevitable, and no high end announcement that is beyond the budget of
99.999% of HP's standard user base could (or should) have been able to
release the downward trend... either on Wall Street, in the board room
(sorry Carly), or on the bottom line.

Glenn
Quintessential School Systems
Developers of QWEBS (see www.qss.com)
QWEBS : The Next Generation - coming soon to an HP e3000 near you...