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Technology Stocks : Compaq

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To: John Biddle who wrote (16252)2/2/1998 9:02:00 PM
From: Loki  Read Replies (1) of 97611
 
John... The benefit derived from selling a division,
losses carried forward (2-3bil?), or cash are
no recurring, but do benefit.

On going benefits as you mentioned have these questions from me.

Do you mean expertise or actual facilities?

Expertise - teaching efficiency is a process that takes time.
Acceptance and trust from the recepient is vital.
Do CPQ and DEC have common vendors? Can economies of scale be
introduced? TQM philosophies similar? How adverse or similar
are the present manufacturing processes or systems.
To take advantage of this is requires a positive transition.
(see my posts Jan 31)

Actual facility - I would consider the critical mass in production
versus regional distribution. (I do not know this for CPQ/DEC)
Sometimes it is more efficient to just manufacture in one facility.
CPQ would want to have the DEC mfg increase their average cost.

One had better buy more than the 140 mil annual profit for 9.6 bil.
You are absolutely correct. The DEC brand name is an intangible
asset... very much outside the US.

"Sell direct without channel conflict"

1. Who is promoting the products CPQ/DEC?
2. To which customer base?
How will this be implemented? Does the sum of CPQ and DEC equal each
individually?

Since I am just learning about CPQ and DEC I must answer you
with questions that I would ask, understanding some of the
general concerns.

I believe others on the thread will have responses to fill in the
blanks and let us evaluate.

Loki
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