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

To: Piotr Koziol who wrote (87609)12/7/2000 2:33:21 PM
From: Bosco  Respond to of 97611
 
Hi Nilesh - I don't know how CPQ does it. I'd think you are right that the currency contracts are insurance against further weakening of the Euro. However, it does have a cost associated with this sort of insurance. In fact, when CPQ announced the pgm, it did make some adjustment to the bottomline. My point is that unless the Euro has appreciated substantially against the greenback, my guess is that it is a wash with at best a +ve bias.

best, Bosco


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