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Technology Stocks : Compaq
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To: E.H.F. who wrote (21747)3/14/1998 8:48:00 AM
From: Jason W. France  Read Replies (1) of 97611
 
EHF,

good comments, but please consider the following

1) Earl Mason is the man that factored his recievables (public info)
at the end of Q3 to boost is ROIC to compare more favorably with Dell. Even though Dell's ROIC was still 3-4X CPQs. HE got called on the carpet by several analysts and he and CPQ lost TONS of credibility with the analysts over that little shenangian. In my honest opinion Ear Mason is a real goof, and costs all CPQ shareholders lots of value. So if you resting your financial futures on Mr. Mason, you might want to poll some leading PC analysts and check his credibilty, because it is at an all time low.

2) I agree with you that CPQ will sell pieces of DEC they do not want. But let me ask you this, once that is done, which pieces will they keep and speicifically how will that piece(s) add to shareholder value??? please advise

3) As far as "coming out looking like IBM" Are you suggesting that is a good thing. just for fun compare the 5 year revenue growth of vertically integrated IBM-type companies IBM/DEC/HP/UNISYS/TANDEM with horizontally integrated companies CSCO/INCT/DELL/OLD CPQ/MSFT
I think you will see that the IBM-type model is not anything you wany your money invested in replicating. If I were a CPQ shareholder I would wnat them in the CSCO list not the IBM list. Which list are they in? And if you state that looking like IBM is good thing (I will continue to debate you on this until you cry uncle) but if you convince me that is a good thing, then why not just by IBM and get the real thing with no execution/merger risk of CPQ. either way CPQ is not the right investment. thoughts?????

Jason
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