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Technology Stocks : Compaq
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To: StockMan who wrote (16238)2/2/1998 8:11:00 PM
From: Loki  Read Replies (3) of 97611
 
Stockman... I suppose you mean positive for CPQ/DEC.

Let's assume the CPQ objective is growth and profit.
Growth - US Market (replacement) - new technology replaces old
Foreign (new base) - distribution and service is needed
(DEC can augment efforts in answering the above needs)

Profit - It appears presently that this has been compromised

1. The complimentary product offering allows for single
vendor sourcing.
Outside the US this might be very beneficial.

2. DEC brand recognition outside the US market.
(Did this fit into the Canon deal?)

3. DEC technology (I refer to the input of persons I know from MIT)

As with many others I have not digested the upside potential and
downside risk. Assets can also become liabilities. (This is possibly why the stock isn't moving) (Fear vs Greed)
Give me some more time. I also have to do some financial analysis.

Had CPQ not pursued this merger I believe other firms (DELL, GTW)
would have. It is their lead to hold. It is bold move.
Everyone is watching and holding their breath... and money.
The DEC culture and lack of profit is of concern.

Having been part of several M&A (Mergers and Acquisitions) I have
little positive to say about their outcome and am also very
reserved in my judgement. (See my posts Jan 31)
I have always been profit (net) driven and not revenue.
The long-term stability might be worth this.

I plan to hold my CPQ shares and use other stocks to make profit the
next year.

Loki

To be continued.....

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