To: John Salek Hope all's well with you. <<I don't think that Palmer will be around after the deal is done.>> Agree, actually I imagine CPQ would replace a lot of DEC management with their own people. The transition would not be as smooth as Tandy, as I see there are big cultural differences between CPQ and DEC. I would guess, it might take 12-18 months
For things to smooth out. As Mr. Pfeiffer acknowledged . ''A lot needs to happen at Digital, no question. COMPAQ has been a leader in efficiency and that will have to happen at Digital,'' he said.
Regarding LEAP's:
<<after all some praise is due to me, since it was me who decided when to take the profits!>>
You got it. At the end of the day it is you and you alone who risks and gets rewarded.
Too many times, I used to blame others(markets, management, short sellers, analysts, etc.) for my own bad investment decisions. I have learned that what is real is the closing price of my stock holdings at day's-end , not my wishful thinking. There are many on this board, myself included that think DEC was sold "cheap". But that does not matter. Being in & out of DEC stock for the past 10 years has thought me an important lesson and that is "markets are what they are, no matter what I think". So after a few hick-ups I learned to place stops, take profit, and stay out when needs be. (easy to say, hard to do)
I still own some DEC Jan '99 $30 calls. Have not decided what to do with them yet. Might end-up Exercising and getting cash & CPQ stock.
<< Part of that success comes from getting an excellent tip from you on this very thread. >>
Thank you, like I said, you made the risk, I was only a "messenger" at most. I liked DEC thread, lots of good people, very objective people.
<<I will have to try to find another stock that swings around like this one does, or rather, did
;-( Any suggestions?>>
Not at the moment. CPQ LEAPS might be a good buy at some point. I am expecting (hoping!!) that CPQ will have a lot of wild swings before the two companies are integrated: that would be a good time to look at LEAPS. I will keep an eye on CPQ Jan 2000 30's. Still pricey, don't chase them. If CPQ common falls in the low 20's, I will buy as I think by 2000, Compaq will be a powerful company. Good brand name, great marketing, good execution of plans (what DEC management lacked).
Other than that, I am trading some beat up tech. Stocks here and there. Currently looking at ORACLE (I just hope that the CEO would focus on database rather than his personal dislike of "Bill Gates" and the Network PC fiasco". ORACLE is still the leader in the database engine, will trade it between 18 - 20.50 for now. You might also look at Quantum (QNTM), a promising company, in the beat-up Disk Drive sector. Again, 19 - 22, is my range.
<<I must admit that I have a certain fondness for DEC.>>
Me too. I spend over 10 years of my life working in that company, left in '94. Well, time has changed, and DEC management lost touch with the market place. I think with Compaq, DEC is better off.
Good luck to all |
