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Technology Stocks : Digital Equipment Corp. (DEC)
DEC 14.80-3.9%9:30 AM EST

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To: Kelvin C.P. Wang who wrote (2899)2/5/1998 12:01:00 PM
From: George Dvorsky  Read Replies (2) of 3276
 
Kelvin,
I guess the Bear Sterns article you posted explains the 1000 call contract buy I mentioned.
This may be leading to a reassessment of the new combined company. All that cash and the synergy that is perceived to be better than at first sight could keep this rally going for a while.
If CPQ is 3 times DEC and DEC is now perceived as being sold for 1/2 price, DEC could move to 70 (imho). The synergy factor is the wild card, not to mention how the stockholders will react to that assessment.

gd
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