Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: George Dvorsky who wrote (2834)	1/27/1998 2:10:00 AM
From: MrBluff	Read Replies (2) \| Respond to of 3276

What will be the effect on INTC if they have to give a discount on all of the chips they sell now to CPQ? Were there any limits to the number of discounted chips? Will anyone else be able to compete? Maybe the best plays are on the short side. (M. Carter, which company should I short?)

To: George Dvorsky who wrote (2834)	1/27/1998 6:18:00 AM
From: hl	Read Replies (3) \| Respond to of 3276

DEC is still trading at a discount to the CPQ offer, which makes this stock more attractive to buy than a direct investment in CPQ. I personally bought DEC yesterday here in Germany the moment when I saw the unconfirmed takeover news on the ticker (that was at 6:15 am eastern time). At this point of time the DEC quote was only at around 48-50 $, so I hope that I have snapped up some shares at this price. CPQ itself seems not overvalued at this levels; I was considering buying CPQ stock, but now DEC offers a great opportunity to invest in CPQ. I was also involved in the Tandem takeover back in july and I must say that all investors who bought Tandem instead of CPQ a month before the merger closed made a good return (this was an all stock deal, and CPQ was trading 25 % higher on a pre split basis than today). The other fact that make this deal interesting is the possibility of another bidder. DEC has no poison pill and is a cash rich company (especially after the ALPHA-sale to INTC), and a possible buyer can also raise 1-2 billion $ through a AltaVista IPO. In my opinion this company is bidable and after the MCI-takeover fight last year, I think no one can say that a company with a high market cap can't attract other suitors. Last year we have seen some takeovers in this sector of the computer industry (Tandem, Amdahl), so there aren't many attractive companies left. The only names that come in my mind are UIS (I am sure they will be taken over this year) and perhaps SGI. My personal advise is: buy DEC even at this price and wait for another offer. Kai

To: George Dvorsky who wrote (2834)	1/28/1998 9:45:00 AM
From: Tom M	Read Replies (2) \| Respond to of 3276

George/all, I agree that I think the merger will be awesome in the long run. Will be trading Compaq as my DEC surrogate for sure. Thought CPQ was fast heading to 25 with that heavy shorting volume of 37M shares, but next day it did 26M in the up direction so perhaps we'll establish interest with the street to not short the hell out of compaq over the next 6 months (I woulnd't hold my breath though<g>). Bought in a bit yesterday but got spanked enough on that first drop from the 50's in DEC to take Hossein's approach of fixed stops. I'll be "trading" CPQ for a while, & hope to see the DEC threaders over there. Perhaps we'll need a "CPQ for ex-DECcies thread" if the CPQ thread becomes one of those super-highway threads <g>. I agree with the common sentiment this was an excellent, objective, sharing thread. No messages just containing the full text of a press release that was available at the top of the thread. Perhaps some of you here who liked the potential of a good company when it's down would like to put our heads together on Boeing. That's another one with great reward potential when the bottom is found, IMO (at 45 now from 60 with $100B backlog). At least hope to see you folks around the CPQ thread. P.S. to George - Are you trying to say the market without DEC will be like dirty sock without his dirt, or perhaps conch shell without her lining? Maybe I'll take Mr. Robbins with me next week to Aruba. Still made very good profits in DEC but have to go lick my wounds about going with the negative earnings releases instead of "hope" of a takeover. I was all thumbs <g>. Hey, how about a general stock idea thread, perhaps "Ask Painted Stick"! best to all! Tom