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

To: Uncle Frank who wrote (3816)	12/12/2001 8:58:25 PM
From: Jerome	Read Replies (2) \| Respond to of 4722

Unclcle Frank...thanks for the postings... Here is another one that does a direct comparison between HWP and CPQ. quicken.com In a whole lot of areas they are very similar. Sales per employee, Book Values (7.19 vs 7.15), HWP has considerable more debt than CPQ 3.7 Billion vs 600million for CPQ. They are also about dead even in cash on hand per share (about 2.50). From a valuation standpoint HWP is getting CPQ on the cheap. One important factor not yet mentioned on either the HWP or CPQ board is this. Prior to making their offer HWP took a very careful look at the books of CPQ. (No ENE here), they also got a pretty detailed insight into how the quarter was playing out. (This is something we have little information on, and for this lack of information I blame MC) Because of the cash on hand by CPQ the price per share by HWP is automatically reduced by $2.50 per share. Frank based on what you posted from CPQ's report I noticed that the Service Business was 25% of Rev. and the Enterprise Computing ( storage and routers) was 32% of rev. These were both growth areas for CPQ and will be growth areas for the new company. CPQ stake in CMGI created a 500 million dollar loss, that should not be a repeating expense. CPQ loses out because it is always being compared to Dell.And when every analyst loves Dell they automatically put down CPQ. But while few were paying attention MC was changing the structure of CPQ to be profitable under CPQ business plan. CPQ plus HWP will be business force that both CSCO and DELL and SUNW and EMC all want to see fail. That's why they are bad mouthing the deal. Regards, Jerome