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Technology Stocks : Compaq

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To: rich evans who wrote (9316)11/22/1997 3:21:00 AM
From: ed  Read Replies (1) of 97611
 
I do not it is a smart move for CPQ to buy DEC. Alpha may be a good CPU but with no name brand and market, and it is very hard to turn around, and DEC is a lousy and poorly managed company.
CPQ should position itself as a system company,developing systems
for various applications. CPQ should also harmonize its business
relations with INTC and MSFT.CPQ may buy out the ALPHA division of
DEC and work together with INTC to codevelop the future CPUs on that base,just in case the relation with INTC is in jeopardy, but CPQ should never market the chip or position itself as
a chip company to compete with INTC. Every company has its own functions, you just can not do everything and still do a good
job. IF CPQ reposition itself as a chip company to compete with INTC,
and system company, you are not just competing with INTC, but also
with your customers who are those box makers. It is not a smart move at all. If CPQ can buy a network company, or design house I will feel more comfortable.
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