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Technology Stocks : Compaq

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To: Elwood P. Dowd who wrote (43478)1/13/1999 7:11:00 PM
From: rupert1   of 97611
 
Elwood: Thanks for the post. I find the Shopping.com thing puzzling.

If one takes the view that Compaq has not done due diligence, or is having a speculative rush of blood to the head, then it is troubling.

Against that we know Compaq is deliberate and was very thorough in its buy-out of Tandem and DEC and got good value for money.

Like the author, I was puzzled by the apparent need for speed, which seems to be the only explanation for paying $200 million.

I would have thought that if the idea was to beef up AV for an eventual spin-off it was not necesary to spend $200 million and associate with such a doubtful company as Shopping.com It could have been done by alliance(s), or partnerships.

I'm waitng for the other shoe to drop. Perhaps the real explanation is more technical than has been explained and may have been indictaed in this excerpt from the article:
_________________

"Schrock (CPQ) told Reuters. "In our estimation, Shopping.com has one of the most state-of-the-art shopping capabilities" of any site on the Web. "
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