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Technology Stocks : Compaq

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To: StockMan who wrote (15495)1/28/1998 7:07:00 PM
From: StockMan  Read Replies (1) of 97611
 
DEC's installed base will be demoralized with this acquistion, and will be left with a great degree of uncertainity.

Any "Big" company such as IBM/HP/Sun etc.. offering security to the installed base will be able to move in. Pretty soon the "installed base" that cpq thought it had could be a small fraction of itself.
The service and support organization having nothing to service and support will be demoralized, and the low morale will further compound the problems.

Ultimately we'll have Eckhard Pfiefer et al.. running around trying to convince wall street what a fine acquistion this was and given time will work. But the stock will tumble.

Of course all of the above are hypothetical scenario but not far fetched.

Yup, expect the stock to "channel" for a long time.

Stockman
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