Compaq Message Board - Msg: 12299341

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Technology Stocks : Compaq

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To: rudedog who wrote (73888)	12/15/1999 7:41:00 PM
From: Elwood P. Dowd	of 97611

what can CPQ do to unlock CMGI's brian_cranston 12/15/1999 05:16 pm EST value??? they could initiate an expanded stock buyback program. they could distribute CMGI shares to shareholders. with the split, CPQ now has 40 million CMGI shares. with 1.7 billion CPQ shares outstanding, that works out to about 1 CMGI share for every 42.5 CPQ shares you own. at CMGI and CPQ's current prices that would be an instant 10% gain which i would gladly take! and at the rate (and directions) in which CPQ and CMGI have been moving, those CMGI shares may eventually rival the CPQ shares from which they were born in value. instead, CPQ seems intent on this nebulous plan of creating strategic alliances and joint ventures which are supposed to add to long term shareholder value. first, i wonder if CPQ will be able to capture the 'value' created by these strategic alliances or if the markets opened up by these alliances will simply be gobbled up by CPQ's leaner, meaner competitors (DELL and SUNW), or if it means CPQ will simply have greater volumes in its declining-margin areas. and even if CPQ manages to successfully capture the value in these markets, how far down the road are we talking about before they substantially add to shareholder value?

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