Compaq Message Board - Msg: 5397209

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Technology Stocks : Compaq

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To: CGarcia who wrote (30269)	8/3/1998 3:36:00 PM
From: Mark Woolfson	Read Replies (2) of 97611

C, I don't agree with your reasoning about why DEC wasn't profitable. Services are a high margin business, PC's are not. DEC had both units. CPQ doesn't have a services unit per se. Believe me Digital has potential to be immediately profitable once all the fat was trimmed from payrolls, non-essential building closed, etc... Advertising power or lack thereof has nothing to do with it, at least in the context you put forth. "Twice the company power" means nothing to me. What does that mean to you? How does "twice the company power" translate into positive earnings? To me twice the company power without doing anything on either side of the merged company means combined earnings and expenses - which would translate into dismal earnings. Mark

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