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Technology Stocks : Compaq

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To: Diamond Jim who wrote (15253)1/27/1998 6:41:00 PM
From: Stonehenge  Read Replies (2) of 97611
 
Hi Jim. cpq is selling at a multiple in the teens x 98 projected earnings with a sustainable +20% long term growth rate. Why not add at this price? Also said that the merger will be accretive yet this year. I think E. Pfeiffer is probably smarter than I am so I will go with my gut here and average down at 30. If I am wrong I'll cry in my milk and enjoy my intc and intcw.

According to yahoo eps est. a price of 30 equates to a pe of 13.8 x projected eps of $2.17 in 1999. This is a simple decision for a long term holder.

Talk to you later.
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