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Technology Stocks : Digital Equipment Corp. (DEC) -- Ignore unavailable to you. Want to Upgrade?


To: stock bull who wrote (2724)1/15/1998 6:39:00 PM
From: John Sladek  Read Replies (1) | Respond to of 3276
 
Stock Bull:

"CNBC said one of the analysts estimates that the value of the company, on a take-over, would be $70/share. Hell, lets sell the company."

I think that DEC could be worth a lot more than $70 per share if the management got off their butts and made some sales. At $13B annual sales, a well-run DEC should be able to consistently make >$1B profit. If they could find a business to invest that $2 billion in, they should be able to make a couple hundred million more.

I always think that the time to sell your company when things are going great and you can sell the company a big premium rather than at fire sale prices. Right now, I think DEC is closer to fire sale.

As always, I think DEC's management has a lot to answer for in terms of DEC's poor performance. DEC needs a management that knows how to get sales, increase margins, and knows how to reinvest profits wisely.

Regards,
John Sladek

Regards,
John Sladek