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Technology Stocks : Compaq

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To: FUZFO who wrote (17896)2/22/1998 4:44:00 PM
From: Jack T. Pearson  Read Replies (1) of 97611
 
FUZFO,

Thank you very much for posting that article about the rush to judgement by a TSC correspondent. What a remarkable admission on Cramer's part!

No one knows how the Compaq acquisition of DEC will turn out. There are lots of opinions, but no one KNOWS. IMHO, the price of CPQ since the announcement reflects the uncertainty of many investors about the wisdom of this acquisition. If they had a lot of confidence that it is a positive development, CPQ would have run up a lot. If they had a lot of confidence that it is a negative development, CPQ would have declined a lot. Neither happened. I suspect it will be many months before we have significantly more information than we do today. I would seriously question the competency of either Compaq or DEC management if they were to make statements that might risk Federal approval of the acquisition, just for the sake of helping short term investors.

Jack
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