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In evaluating COMPAQ's strategy to lessen its dependence on PC's, and to develop new sources of revenues and profits, we hear very little about the potential contributon of Alta Vista. Portals receive such a high rating on WS because their future earnings are expected to be gigantic. The CEO of AV, Schrock, said a few months ago, that the deal was to make AV the No.1 portal and e-commerce site and profitable within two years. So far, COMPAQ has received no premium on its share price for AV and it is rarely, if ever mentioned in analysts reports. Yet its retained majority shareholding in AV, after the spin-off, will be the source of income through dividends not to mention increased business for compaq.com. The capital appreciation of AV's stock will also show up on the COMPAQ balance sheet starting as early as the day after the AV spin-off. |
