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Technology Stocks : Compaq

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To: PCSS who wrote (10804)12/10/1997 10:48:00 PM
From: John Wu  Read Replies (1) of 97611
 
An acquisition right now is the last thing CPQ needs. If these rumors spread (along with the channel stuffing stories and the weakening demand for PCs and the Asian flu stuff), CPQ could break support at 55-58. James Cramer of "The Street" said a while ago that he liked the box makers but was long DELL rather than CPQ because he thought CPQ might do a big aquisition. He must hate CPQ now because he is totally out of tech, even CSCO (one of his core holdings along with MSFT and PZE (Pfizzer?)). An acquiring company's stock usually drops because the issuance of stock in the acquisition dilutes EPS.

JW
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