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Technology Stocks : Compaq

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To: peter shi who wrote (8874)11/13/1997 8:06:00 AM
From: secamend9  Read Replies (1) of 97611
 
Peter, if you REALLY believe you're right - short CPQ for a 16 point run. At a price of 42 the P/E will be considerably less than the market average. That would be unremarkable except you are talking about a tech powerhouse who is a target market segment leader.

Does it seem reasonable for a market-leader, blue chip stock to lose virtually half of its market cap within 30 days of announcing upside surprise earnings, declare a cash dividend, and announce a stock split? I don't think so.

If you really want to short, I think I'll gamble and take the opposite side of the transaction. But, best of luck to you, whatever happens.
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