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 (2904)	2/6/1998 4:44:00 PM
From: MrBluff	Respond to of 3276

George, I had some DEC and was short puts (bullish) at the time of the offer. My action at the announcement was to double-up on both. My thought is that DEC is a value and CPQ is less so. There is also an arbitrage difference in the deal that favors buying DEC. The leverage you get buying CPQ comes with an equal amount of additional risk. Three things can happen to DEC; the worst case is it is back on the market because the deal fell through; (I think that the value has been exposed and DEC would not plummet in that case.) If the price goes up or there is a competing bid, then it will obviously benefit DEC shareholders more than CPQ's. I would like to take my profit and go on to something else but my feeling is that the best is yet to come. BWDIK

To: George Dvorsky who wrote (2904)	2/8/1998 10:23:00 AM
From: George Dvorsky	Read Replies (1) \| Respond to of 3276

Barron's cracks me up. I've been barely skimming it the last month or two and now I've noticed a 2nd case of Alan Ableson saying one thing in his piece and the opposite being said in the rest of the mag. It's relevant here because it's Compaq. Alan A. likes the combined company (the full text is over on the CPQ thread, posted yesterday, I believe) and the tech article in the back (Eric Savitz) questions CPQ's inventory channels (overstocked and dumping or hedging). More later. gd