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: Roads End who wrote (16970)	2/7/1998 11:01:00 AM
From: KAD	Respond to of 97611

Riechers: Thanks for the post. Abelson has been a dyed-in-the-wool big blue fan for ever. I have observed him "caveating" CPQ for over 10 years and while this article is generally very positive it is so only by virtue of his 3rd party quotes of the Credit Swiss Analyst. KAD

To: Roads End who wrote (16970)	2/7/1998 11:42:00 AM
From: Elwood P. Dowd	Read Replies (3) \| Respond to of 97611

Thanks for the article....it's about as positive as Bear-ons ever gets, IMO. Should bode well for CPQ on Monday, unless the market in general tanks. Stephen

To: Roads End who wrote (16970)	2/7/1998 12:41:00 PM
From: Mohan Marette	Respond to of 97611

Riechers: You have done a great service to us on this thread by posting Barron's opinion on CPQ. This further confirms the belief of some of us on the thread. Much obliged indeed. Some of the points i liked are as follows: As one analyst, Charles Wolf at Credit Suisse First Boston, gleefully put it: "In its acquisition of Digital Equipment, Compaq raises theft to a new level." Roberry I say,<gg> Analyst Wolf, plainly bullish over the prospect of a DEC-enriched Compaq,figures that Compaq can cut DEC's component costs by 10%; shrink its payroll by 10,000; make manifest use of DEC's $1.2 billion tax-loss carryforward; sharply reduce the days outstanding of DEC's accounts receivable, while increasing the length of days outstanding of its payables; and more than double DEC's inventory turnover ratio. Doubling DEC's inventory turnover, now we're talking. He calculates, breathing rather heavily, that with all the aforegoing and after" liberating the cash sloshing around in DEC's balance sheet," the cost of the acquisition will be slashed from the aforementioned $9.5 billion to a piddly $3.5 billion. Which would be, he reckons, something less than four times DEC's cash flow next year. Another heavy-breather, i can understand his excitement.<gg> If so -- and the operative word is "if" -- who can quarrel? The deal really is a steal. I can live with the IF,no problem there. You don't see me quarreling do you? <gg> I am rather pleased and delighted in my investment in CPQ.