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

To: Spots who wrote (15894)	2/1/1998 1:10:00 PM
From: Loki	Read Replies (1) \| Respond to of 97611

Spots... What % CPQ net profit are you applying for you formula to figure future revenues? Are the shares outstanding constant? I like to look at % Net Profit for company value and revenue as a factor (among others) for stability and market position. I place relatively little value on revenues alone. The question is...Has CPQ, in its acquisition of DEC, traded earnings growth (stock value) for revenues/complete product portfolio (stability)? How much? Short term? Long Term? "4 X in six years" ... Yes, this would be very fortunate. (Ofcourse, as everyone else on this thread I would be happy to see more.) Historically, good investments were expected to double every 5 years. What is your estimate for Dec 1998 share price? Range? Loki

To: Spots who wrote (15894)	2/1/1998 3:42:00 PM
From: Ex-INTCfan	Respond to of 97611

Spots, excuse me, but I don't recall disagreeing with the premise that it will be difficult to reach 1/2 billion in market cap in 6 years. I was questioning your math on the 1 billion market cap figure you were quoting. I am looking for similar gains as are you. I also think we can do a lot better if things go right. Steve's argument about increasing share as competitors drop out might be one thing that helps us do better. When you compare market caps to other companies, you are comparing CPQ's six-years out to current market caps. Now, market cap of MSFT has increased 8x in the last four years). I don't think it will move so fast in the next four, but it (MSFT) will have a huge market cap 4 to 6 years out, provided Java et. al. doesn't cause problems. So a half billion market cap would not be huge compared to the other big players -- I don't buy that part of your arguement. I do buy that this would be too big a gain for cpq in such a short period.

To: Spots who wrote (15894)	2/1/1998 4:39:00 PM
From: hpeace	Read Replies (2) \| Respond to of 97611

spots, that is a 20 times increase in stk... play with margins...not so much with revenue and what do you get with you extrapolations. in 1983 it looked like $50,000 worth of cpq(25k on margin) would not by 1 million in 1990.....but it was ..in 1992 it looked even bleaker for $50,000 worth of stk to become 1 million in 1997... but it did so, why would it be any different today.????????? play with the gross margin figure whcih is what cpq is working on and what do you get. see ya in 7 yrs now..i'm moving 1700 shares to a special account next week and we'll check it in 7 yrs not 6.