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Technology Stocks : Digital Equipment Corp. (DEC)
DEC 14.34-1.7%Dec 12 9:30 AM EST

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To: John Sladek who wrote (3005)3/5/1998 12:59:00 AM
From: George Dvorsky  Read Replies (2) of 3276
 
J/all,
I just reminded the CPQ board that there are p/e's below 20. It reminded me that this board might have forgotten what a p/e (besides "N/A", of course) is.
The analysts are fighting it out on this one. The uncertainty alone should cause a drop and volatility. It's really hard to surf these El Nino waves.
BE CAREFUL that the CPQ / DEC deal doesn't fall through. I haven't done close analysis of the price action, but the street seems to be less sure of the merger lately. The option prices show there is some risk of the deal falling through (or being sweetened) but the stock is getting beat.
Protective puts are expensive, but may be worth it.
Remember what I said about DEC not weathering downgrades well. Even the arbitragers are nervous.
gd
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