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


To: Elwood P. Dowd who wrote (15579)1/29/1998 9:30:00 AM
From: Johnnie W.  Read Replies (2) | Respond to of 97611
 
Another analysis why CPQ/DEC is a great buy!

CPQ has 1.5 billion shares outstanding that earn $1.19 each. They are issuing 150 million to buy DEC. DEC earns $2.10/share.
($1.19 x 1.52 billion) + (150 million x $2.1)/ 1.67 billion = $2.1238 billion. Shares will earn (with no growth included)= $2.1238/ 1.67= $1.27/share. Given a growth rate of 30%= $1.27 x 30 = $38.15.

Certainly merger costs are not worth an $8 premium. ANY COMMENTS!