stephen,
Here is my take on the current state of affairs as far as CPQ stock is concerned, strictly from the stock price point of view.
Overall, Wall street doesn't like the DEC deal. They might change their minds when CPQ proves them other wise, which will be a few quarters or years down the road. CPQ used to be a PC pure play just like Dell, with nice, predictable growth. Now with all the baggage that came with the DEC deal (OpenVMS, UNIX, Alpha, bloated employee ranks, to name a few), it is not a pure play any more. They look more like IBM and HWP. Of course, IBM, HWP and CPQ/DEC makes awesome machines and have superb enterprise presence. But they are not high growth companies like Dell and CPQ(before the DEC merger).
The CPQ/DEC merger is a good move as far as making CPQ a world-class computer company. But the way Wall street works, it is not a good move for the shareholders, at least in the short-term.
But I could be wrong. CPQ might come roaring back next week.
Regards,
Clayton |
