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Technology Stocks : HWP -- Hewlett Packard -- Ignore unavailable to you. Want to Upgrade?

To: FR1 who wrote (3754)	12/11/2001 12:11:56 AM
From: Oeconomicus	Respond to of 4722

A major merger in the billions of dollars is vision. No, it's the appearance of vision. CPQ restructured and is going after the high end of the market which is just what HP has to do if they want to remain a major player. Hmm. Are you talking platform? CPQ leads in Windows servers while HP is second only to Sun in Unix servers. The Linux market is only now emerging, so market share at this point doesn't mean much, but HP has some things going for it there (think security) that lead me to expect a strong position for them. Not platform? Price then? CPQ leads in entry-priced servers while HP has a big piece of the midrange pie in the number 2 spot. What does CPQ bring HP in this market other than lots of installed entry-level windows boxes? Besides the obvious Dell threat in that segment, it's hardly the kind of "high end" market you claim HP is missing. Besides, why do you and the analysts think you can add the HP and CPQ market shares together and get the new, combined company's share? Other than as a high historical level from which to draw negative comparisons, it has little relevance to the future, when only one brand remains in the market. Niles also points out, correctly, that when Carly goes so will some top management. Like who? The CFO who can't predict sales a month out, much less earnings, and forgot that hedging currency risks is part of the job of CFO in a large global business? Boo hoo. Who else? Finally, re Niles himself, didn't he also argue that without the merger, HP would have to exit the PC business? I won't rehash the merits of HPs PC business - I covered that earlier. And I don't know what Niles said when the deal was first announced, but the overwhelming majority of his seven+ figure salaried fellow financial whizzes, who can't even predict the next quarters sales without spoon feeding from management (compounding HPs problem of management that couldn't predict them either), panned the deal. Two downgraded the stock as a result of the deal (I'm pretty sure there were no upgrades), and the stock tanked (not just because of arb selling either). These geniuses were bashing HP before Carly, they bashed it again after she screwed up a few times, then again when she agreed to buy CPQ, and now again when the deals looks dead. Face it, they just don't like HP. A broken clock is right twice a day. And if the confusion over what time it is (time to buy or to sell?) leads to volatility, their firms make more money. PS: All this ranting about silver spoon, trust fund babies ruining their father's company sounds like an attempt to divert attention from the real issues of the deal, to discredit those opposed to it without ever having to address the concerns they raise. The PR (propaganda) machine is working overtime, but like the last few years prove, PR is not the same thing as vision.

To: FR1 who wrote (3754)	12/11/2001 12:23:30 AM
From: kumar	Respond to of 4722

Niles said ...CPQ restructured and is going after the high end of the market... CPQ acquired Digital (DEC) and Tandem. Compaq does not promote either of their platforms. what high end, Huh ? Right now they are just dying and without the merger HP is really hurt. ... Their [the foundations] HP stock is their meal ticket and they don't want to take any chances with it. I'll be generous and say that it was a cheap shot not worthy of someone thats in a position of influencing others opinions. FWIW, I'll be voting my stock against the merger. cheers, kumar PS: have u been to HP Labs in Palo Alto or Bristol ?