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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: stock bull who wrote (71096)	9/18/2006 1:17:26 AM
From: Elroy	Read Replies (1) \| Respond to of 77400

Why would anyone want to gobble up GTW? What do they have to offer any potential buyer? GTW has ~$3 billion per year in PC revenues. For HPQ, which is able to earn operating profits of ~4% on its PC revenues, if they can bring GTW up to HPQ's level (not too tough, just eliminate overhead) that translates to acquiring GTW would offer HPQ $3 billion x 4% = $120 million per year in operating profits, and also would make the PC industry a little less competive as there would be fewer separate companies.