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Technology Stocks : Compaq

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To: William C. Spaulding who wrote (1219)12/14/1996 10:40:00 AM
From: Leo Francis   of 97611
 
William, your trailing earnings for PE analysis is going to change drastically in 30 days. CPQ will report $1.65 to $2.00 for Q4 (my estimate is $1.87-$2.00), and will then bring trailing earnings to $4.65 - $5.00. At $50.00, that's a pe of 10/11. That is not going to happen.

Using your pe of 15/16, you get $74 - $90. Current trailing pe is 20-24. We will be no where near $50-$55. $100 and higher is much more probable.

CPQ's cash alone is worth $10-$11 per share. LF
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