Rudedog,
Here is how CPQ beats Ests in Q3 and Q4.
At the end of Q2, the Dec merger is done.
CPQ will take a charge of a billion $$ or so, Probably more.
It will include in process R&D, a charge for the layoffs, and an inventory charge.
The charge may be 3-5 billion, I don't know.
Most important is the inventory charge. Any inventory that is more than 2 weeks old will be written off at 0.
In Q3 and Q4 when CPQ sells the machines, it will be @ 100% margin,
or a reversal of the charge.
Either way, it should be a big boost to the bottom line.
And no one cares about the numbers for the year so that won't matter.
As long as they can present an improving quarterly situation, the stock should be in good shape.
remmember, You have to think, What would be the best way to bet the stock rolling to the up side.
I like this tatick.
Jim |
