Obewon: I've heard that will be accretive to earnings immediately also,
but I have real problems with projected 5 year growth rates from Zacks:
CPQ: 19.3%
Tandem: 11%
Also, based on past or projected eps performance, I doubt if i would
buy TDM stock,(unless, as you indicate, as a possible turnaround play).
From Zacks:
Zacks analyst watch report: TDM Page: 3
TANDEM COMPUTER 6/28/97
COMPANY VS INDUSTRY
---------- EPS GROWTH RATES --------
P/E ON
LAST 5 YRS 97/96 98/97 NXT 5 97
ACTUAL (%) (%) (%) YRS(%) EPS
COMPANY -17.0 N/A 27.4 11.0 18.9
IND: COMP-MINI 13.9 -7.0 19.1 17.8 24.0
(T=299)
S & P 500 12.6 10.8 5.8 8.0 19.8
------------------------------------------------------------
COMPANY-INDUSTRY -30.9 N/A 8.3 -6.8 -5.1
COMPANY-S&P -29.6 N/A 21.6 3.0 -1.0
---------------------
IMO this isn't in the same league as, for example, a Gateway acquisition. The more I look, the less I like it.
My opinion only.
Good trading,
jim garrison |
