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Technology Stocks : Compaq

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To: Rob Rob who wrote (14913)1/26/1998 10:32:00 AM
From: Andreas  Read Replies (2) of 97611
 
To Rob Rob,

Sure, all the assets of DEC will become the assets of cpq including obviously the cash. However, growth through acquisition is either dilutive or accretive. Prefereably you want growth through increased core sales, market share, new product lines etc. Growth through acquisition typically doesn't get you anything in the short-term because it is typically dilutive. Buying a dollars worth of eps and paying $1.10 doesn't help acquiring companying shareholders (certainly in the short term) absent synergies which will materialize in the long term and equate to higher eps down the road.
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