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

To: Tom M who wrote (2772)	1/23/1998 9:28:00 AM
From: Charles Skeen	Respond to of 3276

Re: <<Are any of the regulars still loading up at these prices?>>> This move has been so swift and unrelenting -- it just blew right by without my being able to add on at all. Fortunately, my current position is quite adequate, one of my largest holdings. But what a move! Up 8 straight days for a gain of 28% from the 1/9 closing @ 35 1/8. While I still think thre is major resistance at 49-50, I think some consolidation around current levels (44-46) is likely. But I think that finally DEC is getting some good earnings visibility (despite lowered estimates for this quarter and next) and longer term, I think that we can look forward to much higher prices. Charlie.

To: Tom M who wrote (2772)	1/23/1998 11:50:00 PM
From: George Dvorsky	Read Replies (2) \| Respond to of 3276

Tom, I've been busy and am just catching up on the recent run-up. I believe it is a really a run-back-up. A Dow Jones piece a few days back speculated (as is it were fact) that DEC was down because of overexposure in Asia. The market saw DEC wasn't hurt that badly over there and the reason for the sell off disappeared. Also, finally, at last, Europe is picking up. DEC does 2 to 4 times as much business over there as Asia, and could skyrocket on news of a strong Europe. Good news from Dow Jones continued in an earnings report news story: "Digital said sales of servers equipped with an Alpha chip and the Unix operating system were up just 5% from a year ago. Alpha unit sales increased by 26% but overall revenue increased by just 2%." Aside from being cofusing, this tells me that one of the more important indicators of the last few years, Alpha growth, was getting a shot in the arm. It is becomming apparant to DEC and the rest of the world that DEC must not only win in the Price/Perfomance catagory, DEC must match price alone to spur Alpha sales (about time they figured that out!). They cut prices drasticaly last year and sales went up. Now they've recently cut prices again. We may assume that the servers will fly out of the factory. Then we may predict that more native software will be written for Alpha and so on.... So, in summary, we have: 1. the reason for the sell-off over 2. Alpha growth resumed (units will eventully become profits) 3. Europe (40% of the business) is returning. driving the stock back to where it hit the last cieling, and perhaps higher. Throw in a takeover rumour or 2, mutual fund buying and you find DEC going up as the S&P goes down. gd p.s. Thanks for all the recent relevent updates on the board. I've been way to busy to get all that info for myself. g