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

To: John Sladek who wrote (2763)	1/21/1998 7:03:00 PM
From: hossein hosseini	Respond to of 3276

All: Let's be negative on DEC so it goes up!!. This seems to be the only way that DEC moves lately. On a serious note, I like the recent action. Today, though, I don't know how much money was moving from IBM to DEC stock? I am not sure about the short term trend though. I think when all the earning reports are out, the analysts will start adjusting future earning forecasts (to the low side) because of SEA. This will result in most tech stocks going lower. Good luck to all,

To: John Sladek who wrote (2763)	1/22/1998 3:21:00 PM
From: Terror	Respond to of 3276

Dec raised price target to $70 per share from $60-$65. Paine Webber has a stong buy. We have raised our 12 month to 18-month price of 60 - 65 to 70 per share. Much has changed since we last looked at DEC from "sum of the pieces" perspective a few years ago. In addition DEC will likely have net cas of $13-15 per share after the deal with Intel. Although a $70-80 price target may appear aggressive given our current fiscal 1999 ESP estimate of $3.75, that estimate is only based upon DEC achieving a 4.4% operating margin, well below DEC's stated target of a 7% after tax margin. (break) Bread down of business Estimated Value (Per Share) Maintenance $25-30 Alpha Servers $12-15 Services $7-13 PC's and PC servers $8-13 Storage subsystems $4-6 In addition DEC will likely have net cash of $13-15 per share after the deal with Intel. We put a very modest combined value of $2 per share on its networking, software and terminals businesses, and no value on its $3.4 billion of operating loss caryforwards. SO sounds like DEC is comming to like on Wall Street! Stay tuned. Marcie