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Technology Stocks : Compaq

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To: Steve Porter who wrote (15038)1/26/1998 4:52:00 PM
From: robbie  Read Replies (3) of 97611
 
Steve, what I am starting to see is DEC's profit going through the roof as a Compaq subsidiary. Look at these numbers:

Compaq
Sales - $24.6 billion
Net income - $1.9 billion
Employees - 18,900

Digital
Sales - $13.0 billion
Net income - $141 million
Employees - 54,400

Net income per employee = Compaq 100,529, Digital 2,592! You can be sure that DEC's number will rise substantially now that they are owned by Compaq. Sure there will be a one-time restructuring charge but I'll trade the potential gains we will see long-term any time!
BTW, reduce the cash paid in the deal by DEC's cash at year end and cash they will be receiving in the Alpha/Intel deal and you are looking at a STEAL. There is no doubt in my mind that the market will eventually love the deal.

Robbie
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