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Technology Stocks : Compaq

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To: xwallst who wrote (17795)2/20/1998 8:25:00 PM
From: StockMan  Read Replies (1) of 97611
 
Of the Wall,
Re -- How can you say that despite no information, $50 billion is the number to work with right now?

Because that was CPQ's stated goal. And if you think that CPQ can grow DEC revenues in the face of uncertainity of this merger, you got to be kidding. If DEC's revenues were to remain flat or grow moderately, and CPQ were to grow at their previous rate, you would arrive at 50 billion.

Right now like CPQ said, its 50 billion by 2000, until they show otherwise, and thats a 15% growth rate.

CPQ should be compared to IBM and HP, because CPQ want's to be like IBM and HP (top 3 computer companies).

Stockman
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