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Technology Stocks : Compaq

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To: James F. Hopkins who wrote (23574)3/28/1998 7:13:00 PM
From: Satyr  Read Replies (2) of 97611
 
Jim
I think the DEC shareholders would be crazy to turn this down. Remember that DEC was trading at 44 before the announcement and that it's 51 now. That's not because of their stellar earnings.

Also I've been thinking about how everyone is blaming the DEC deal for the price problems of CPQ. The more I think about it the less I believe it. Most people viewed the deal favorably and agree it's the smart move. The deal was blamed for the price woes because there was no other explanation at the time. Now in light of what we know I find it very possible that the problems were of CPQ making. (Stuffing the channel,creative bookkeeping.etc) If the deal falls through i doubt that CPQ would benefit from it price wise. The asian problem still exists as one company after another warns or fails to meet their numbers.
Whe the climate changes and CPQ gets their house in order the stock will rise. It's to good of a company to stay down forever but the correcting of things may take longer than many here would want to believe.
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