Thread - Couple of things. First, thanks to Kai-Uwe for the postings in regard to brokerage firm comments on CPQ. I found it interesting that CPQ is now growing *faster* than Dell, especially in view of the fact that *CPQ* is more than twice the size of Dell. On the other hand I have seen some posts from a Dellhead that seems to imply that this might be simply due to CPQ's changeover to the BTO model, (and might be a 'one time wonder'), comments would be appreciated!!
Second - Several comments have been made lately concerning CPQ's 6B cash hoard and possible acquisitions. It has been mentioned that Alan Lutz has EP's ear to build this business. Well, it looks like it's back to this spring in the networking area, all the majors (except for Cisco) are tanking. CS is now down to $15.50 and COMS just warned, so they may be in the 20's soon (like tommorrow!). Someone on the COMS thread said COMS was at a 12B market cap, if that is at 38, then CPQ could swallow it up without too much difficulty. That would instantly make CPQ a major player in networking. Question is, how bad are things at COMS and what are their future plans for higher margined switching products. Right now, if CPQ bought them they would become the NIC leader, modem leader (although THAT's a DIRTY word right now!), and would also buy some switching capacity. On the downside, CPQ's management would have to get involved in helping sort out the mess, including the still ongoing merger with COMS/USRX. But - the bargains appear to be on the near term horizon in this group!!!
John |
