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

To: Mohan Marette who wrote (16307)	2/3/1998 10:32:00 AM
From: Andreas	Read Replies (3) \| Respond to of 97611

Here's an excerpt from Jubak's Journal's recent article on the cpq/dec deal. It's somewhat interesting. I do not, by any stretch of the imagination, have much respect for his stock-picking abilities. Why? Look at his track record - nothing to write home about. In any event here's what he says in part: "I think Compaq will struggle as it digests the acquisition. I'd expect the hit to margins and the round of write-offs to surprise investors who think they've seen all the write-offs. And I'd expect that the benefits that management is hoping for will drop to the bottom line more slowly than they'd like. The Digital acquisition doesn't fill all the gaps in Compaq's enterprise strategy -- for example, Digital has only a minimal competence in applications. (Compaq has virtually none.) Digital's service group, while moving aggressively into the Windows world in the last few years, still carries substantial baggage from the days when Digital believed in proprietary operating systems. The frustration level could get pretty high at Compaq, and management is likely to take a misstep or two" Take it for what it's worth. Time will tell if he's right..