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

To: Jim McMannis who wrote (15127)	1/26/1998 10:27:00 PM
From: TideGlider	Read Replies (1) \| Respond to of 97611

Jim: CPQ held up very well after announcing such a large purchase. Normally the larger company goes down in price. Many other mergers have seen much larger drops in the price of the pruchasing company. Seems you guys have visitors that know that and are very disturbed their puts didn't pay as well as they usually do on such a large purchase. TG

To: Jim McMannis who wrote (15127)	1/27/1998 12:29:00 AM
From: Charles Skeen	Respond to of 97611

Re: <<<Seems like the street sees CPQ as paying too darn much for DEC.>>> Perhaps, as a DEC shareholder, my opinion is biased, but I think that CPQ is getting a bargain. I think that today's action (CPQ down 2 and DEC up 10) was, at least in part, due to actions of the arbitrageurs, who bought DEC and sold CPQ short, to take advantage of the spread in price between the value of what DEC shareholders will receive and the current price of DEC stock. Once the arbitrageurs have their positions, this selling will stop and CPQ will be ready to bounce. A look at the chart shows 200-day MA support in the area of the current price. What CPQ brings to DEC is management -- that should be able to double DEC's 3.5% margins to 7%. What DEC brings to CPQ is credibility at the enterprise level, plus wider acces to international markets. CPQ is getting a bargain -- a bunch of cash plus cheap earnings plus technology plus wider access to markets. If the management process works well, CPQ-DEC will become the pre-eminent company in the computer industry. Best to all from the merger. Charlie.