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Technology Stocks : Digital Equipment Corp. (DEC)
DEC 14.80-3.9%9:30 AM EST

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To: hl who wrote (2836)1/27/1998 11:37:00 AM
From: George Dvorsky  Read Replies (3) of 3276
 
RE: Buying DEC vs. CPQ. When you buy 100 shares of DEC at 60 for $6000 and CPQ moves up a point, you make $100. If you had bought 200 shares of CPQ for that $6000 and CPQ moved up 1 point you would have made $200. With DEC you are buying $30 of cash, which is not supposed to go up. You obviously also leverage the downside with Compaq.
The advantage to owning DEC is the possibility of a higher bidder, as I noted in the previous note.
Buyer Beware.
I holding options, and am comfortable with them as they are.
gd
p.s.
no spell check this time
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