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To: Yaacov who wrote (13485)11/22/1997 7:12:00 PM
From: TechnoWiz  Read Replies (2) | Respond to of 27012
 
Hi Yaacov: I have an old saying: When stocks split in a bull market they breathe with life. When they split in a bear market, they can sometimes gasp from the kiss of death.

So far Cisco continues to look uniquely bullish in a sector that has been taking somewhat of a beating in recent weeks, so I would not rule out a merger or some kind of major news in the offing. Whatever they are doing, they appear to be doing things right and the maket likes it.

Compaq on the other hand faces more comptetion and other problems but has initiated a number of winning strategies that have kept them at the forefront of the industry. Barring any mistakes or upsets, it still looks as if CPQ wants to have another shot at testing the highs and perhaps exceed them. CPQ stockprice and $100 level have had a magnetic attraction until recently, but there's no reason to say it can't happen again post split at some point down the road. However, one should keep in mind that along with Dell this has been a high flier and at some point will probably succumb to a severe price adjustment.

Good to hear from you

Ciao!

Wiz