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

To: Loki who wrote (17809)	2/20/1998 8:55:00 PM
From: Spots	Respond to of 97611

>>When Mr. Pfeiffer mentioned 50 bil rev. by 2000 did he already consider DEC? Loki, you can be fairly sure he did. I don't have any inside info on this; just observing. The fact is that CPQ at the time that statement was made said they were pursuing acquisitions. Subsequently (or roughly at the same time, I forget the exact sequence), CPQ acquired Tandem. After that they acquired/will acquire DEC. IMHO, I think they will attempt to acquire a network player, such as Cisco, and possibly a BTO company such as Gateway. I know any number of folks are going to jump on me for this, and I don't mean to imply these particular acquisitions, but I think they are both likely candidates. This is pure guesswork, it's just my feeling. Anyhow, with or without such acquisitions, CPQ will have put itself well into the "50 million revenue" bracket by the year 2000 as predicted, provided only that the DEC buyout goes down (call it "merger" if you want to be technical). More buyouts will mean more dilution. I guess I argued this with Steve to a fair-the-well, and I don't really intend to restart it; but dilution means losing leverage on earnings increases at these capitalization levels. We give up leverage for stability (assuming it all works out, of course). So 'twas, so 'twill be, IMHO. Regards, Spots