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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Kenya AA who wrote (64059)	6/24/1999 9:36:00 AM
From: QuentR	Read Replies (1) \| Respond to of 97611

IMO the sale of AltaVista will probably mean future dollars to Compaq rather than an immediate boost. If there was a sale for cash then we would benefit immediately and directly. With a sale for stock, Compaq stays in the internet business through alliances, partnerships and investments in other companies. I do not think they ever intended to be a direct player in internet business, since the plan was to spin off AltaVista into another company. Spinning it off to a third party achieves about the same result. Compaq does not seem to be equiped to be a direct player in internet business, so this may the most they can get out of AltaVista. From an investment point of view Compaq will probably not loose much in the deal from what it invested. The time for an opportunity to make a big gain from purchasing AltaVista is probably gone. I think the expectations may have been exagerated also. So a small pop from the sale would be good. Only a profitable quarter is going to get us out of this mess. Eliminating AltaVista will probably focus the business on building and marketing hardware.