Digital Equipment Corp. (DEC) Message Board

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Technology Stocks : Digital Equipment Corp. (DEC)

DEC 14.32

-5.4%

3:59 PM EST

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To: sstockss who wrote (2883)	2/1/1998 11:25:00 PM
From: George Dvorsky	Read Replies (1) of 3276

Sstockss, It SSure will be tough traSSitioning from DEC to CPQ (in addition to learning to type the symbol). DEC was viewed as a turn around play, CPQ is a growth play. CPQ has a high P/E that may scare a lot of people but, most of the time, DEC showed no earnings, only their potential. I don't know how much of my portfolio I'd put into 'in the money' LEAPS for this close. My style would call for buying Jan 00 or Jan 01 40 or 50???? calls. I use a crude spreadsheet to look at the payoff from an anticipated move, and weigh the risk/reward ratio. Without running the spreadsheet (no time for the next month, I'd like to run it when I sell my April DEC calls) I'd guess less 'gambling' money would lock in the big move that would result if the DEC division finally started contributing $5/share to the bottom line. The growth rate would look staggering and could easily push CPQ/DEC over $50. On the other hand, short term integration problems could keep your stategy from being worth the risk. I would seek the advice of William Vu, who I belive was very timely and accurate on his last public reccomendation of DEC LEAPS. Too quick to spell check, gd

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