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Technology Stocks : Digital Equipment Corp. (DEC)
DEC 13.78-2.1%Dec 18 3:59 PM EST

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To: Tom M who wrote (2689)1/8/1998 2:41:00 PM
From: Tom M  Read Replies (1) of 3276
 
That's enough uncertainty for me, this DEC bull's out for now (kept 100 because I just have to hold common if Palmer ever gets the boot). Still great potential for DEC's future but guaranteed uncertainty for a while now, IMO.

What if:

- there goes "all that cash"

- and future discounts until a new settlement

- new settlement is years in comming/lawsuit/money

- DEC gets fab/leadweight back

- Has to re-motivate engineers who they planned on abandoning to Intel (or those who couldn't go)

- Savings from personnel who were going to Intel eliminated

I can't think of much of a plus side to this development unless they say Intel has to pay the original $3B figure. I thought DEC would have a strong chance of making a dent this year but with this added to the Asian earnings question, I'll wait for the report with earnings. The investigation has dragged out Intel's Chips & Technology acquisition and therefore CHPS shares since last summer, I just don't have a good feeling this will be resolved too quickly.

good luck all,
Tom
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