SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Compaq
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Salah Mohamed who wrote (63157)6/15/1999 11:45:00 PM
From: E_K_S  Read Replies (1) of 97611
 
Excellent find Salah - I did not realize that CPQ's service business was that large. I guess it is the growth that the market is worried about.

From your posted article:"...The top 10 organizations in the VARBusiness 500 are:

Company Symbol 1998 Revenues
1. IBM Global Services (1 last year) NYSE: IBM $29.00 billion
2. EDS Corp. (2) NYSE: EDS 16.90 billion
3. GE Capital IT Solutions (4) NYSE: GE 9.00 billion
4. Anderson Consulting (3) private 8.31 billion
5. Compaq Services (new) NYSE: CPQ 7.00 billion
6. Computer Sciences Corp. (6) NYSE: CSC 6.60 billion
7. Unisys Services (14) NYSE: UIS 4.91 billion
8. Science Applications International (7) private 4.74 billion
9. Inacom Corp. (13) NYSE: ICO 4.27 billion
10. Oracle Consulting Services (10) NYSE: ORCL 3.93 billion ....."

========================================================

The storage business is really going to grow too. Your are correct that CPQ's current price reflects a great buy just for their storage business alone especially if you look at EMC's current valuation.

The new CEO will be an important addition to satisfy Wall Street's expectations. CPQ has the necessary assets, new products and patents to compete. It is just a matter of building an effective organization that provides the products and services that the customer demands. CPQ is not just a box maker any more.

Would you like to speculate as to what the value of all these assets are IF managed to produce "average" industry market margins and "average" industry growth? I suspect it is is higher than the current market price of $21 1/4.

EKS
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News