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Non-Tech : Amati investors -- Ignore unavailable to you. Want to Upgrade?

To: Wesley0428 who wrote (30445)	2/2/1998 9:25:00 AM
From: JW@KSC	Read Replies (2) \| Respond to of 31386

Re:Why would Compaq wait for DEC to sell off their networking business Why would Compaq wait for DEC to sell off their networking business before buying them if the were interested in acquiring a networking company? Wes, Digital (I call them DEC as I have maintained their DEC/VAX main-frames for 16 years) has had a troubled past by trying to be all things to all customers, Digital ended up killing themselves everywhere most notably in the desktop side business, where it dropped a fortune. It's stock at one time hit an all time high of almost $200 per share just over a decade ago, DEC's share price fell to a low of barely $18 in the 2Q of 1994 before beating it's way back up to it's pre-Compaq deal around $35 per share this month. This has been a disaster for investors. If you had invested $10,000 in DEC 10 years ago, you would have about $3,600 today. As it is Compaq paid almost 25% more for DEC than Wall Street thought it was worth. If DEC is such a bad manager trying to all things to all companies, then why would Compaq not be happy with DEC selling it's networking Division off. Personally I feel Compaq purchased DEC to get it's hands on the Alpha Processor, with the latest speed of 500Mhz. Alpha can do great things in the Server Market. DEC recently agreed to support Microsoft's upcoming Windows NT 5.0 networking software and SQL Server database software products, and DEC will also increase the number of Microsoft system engineers to 3,000 by the end of 1999 from about 1,600 now. DEC will be designing systems with up to 64 of its Alpha chips to run software programs that can run the operations of huge manufacturing and financial operations. So let DEC do what it does best, and Compaq can buy a Networking Equipment Manufacture that does what it does best. Letting DEC try to run a Network Equipment Manufacturing, is like trying to run WIN95 a 486DX33, it works but not efficiently. That's just my opinion, I could be wrong. Regards, JW@KSC