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

To: hpeace who wrote (11845)	12/19/1997 2:36:00 PM
From: Dan Packer	Read Replies (3) \| Respond to of 97611

WWW.rumors.com is floating the thing about CPQ buying GTW again - price this time is 31. What would CPQ get from such a transaction? Is there anything at all that GTW offers? More of INTC's attention, affection? ALR's servers? At 10-15, I could see it, but 30? Dan

To: hpeace who wrote (11845)	12/21/1997 12:53:00 PM
From: Kenneth R Miller	Read Replies (2) \| Respond to of 97611

Steve: I just picked this up from Zacks.. an update on earnings for CPQ from Soundview: CPQ: SOUNDVIEW FINL increased estimate for quarter ending 12/97 from $0.83 to $0.84 on 12/16/97 CPQ: SOUNDVIEW FINL made new estimate for quarter ending 03/98 of $0.73 on 12/16/97 CPQ: SOUNDVIEW FINL made new estimate for quarter ending 06/98 of $0.78 on 12/16/97 CPQ: SOUNDVIEW FINL made new estimate for quarter ending 09/98 of $0.91 on 12/16/97 CPQ: SOUNDVIEW FINL made new estimate for quarter ending 12/98 of $1.02 on 12/16/97 The latest figues I get from M/W are: $2.67 for 97 $3.44 for 98 $4.22 for 99 That equals growth of 28% from 97-98 and 23% from 98-99 The fair valuations for CPQ stock price would be: $72 for 97 $92 for 98 $113 for 99 That is assuming that compaq should sell for a P/E of around 27 At todays closing price of $53.50 the P/E is only 20.03 How do these figues compare with yours? Regards, Ken Miller P.S. The PEG is at .74 .That means CPQ at 53.5 is at 74% of fair value.. That makes compaq a value play at this price!