Intel Strategy for Achieving Wealth and Off Topic Message Board

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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic

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To: Stonehenge who wrote (17964)	3/1/1998 9:39:00 AM
From: Stonehenge	Read Replies (1) of 27012

Hey guys check this out. COWEN & co on Compaq, the merger and the benefits-A summary Compaq's pending purchase acquisition of Digital Equipment (DEC: $61; Buy) will create a powerhouse enterprise computer systems player with pro-forma 1998 revenues of about $43 billion. Conservatively, assuming just $500MM in annual cost/expense savings (relative to a combined COGS + operating expense base of $35-40 billion this year) and $200MM/annum goodwill amortization, we calculate the deal could be significantly accretive to 1999 EPS, which could be boosted to roundly $2.50, compared with our present pre-merger CPQ estimate of $2.25. According to the Cowen/Datamation User Survey, Digital and the top two pure x86 plays (Compaq and Dell) loom as the most obvious beneficiaries of NT in the enterprise; the Compaq and Digital merger, all else being equal, lifts Compaq's future enterprise systems mind-share among NT centric sites from 19% to over 30%, leapfrogging IBM and HP.ÿ - Richard Chu, 2/17ÿ $2.50 per share 1999. Just do the math yourselves. It looks like the street is crazy. Can you imagine the short sqeeze if this guy is right? Would that be wonderful to witness or what???

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