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Technology Stocks : Compaq

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To: Night Writer who wrote (43153)1/11/1999 11:44:00 PM
From: Pruguy  Read Replies (2) of 97611
 
NW
I am well aware of everything you noted, but why buy an existing business with a bad reputation for 220mm. They can build one for a fraction of that and it doesn't come with complaints to the better business burue. I didn't believe the 3 pt gain had anything to do with this acquisition. I was wondering why it was done. I still haven't heard anyone conme up with anything that tresembles an accurate answer. I'm sure there is one, but I want to understand what it is.
this an enourmous departure from their existing business practices because you really have to stretch to see where they are going with this. Usually acquisitions are easyt o understand the reasoning, this one hasn't had any reasoning brought forth.
by the way, if the answer was to establish a internet marketing precence, they could have spent less than 220mm on their existing websites to build that up, so there has to be more to it that meets the eye. I didn't hear one wall street fundamentalist know what to make of this. I suspect it will come out soon enough and be brilliant but i'd love to know what it is now before wall street understands it.
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