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

To: kahunabear who wrote (20789)	3/8/1998 8:27:00 PM
From: peacelover	Respond to of 97611

whipsaw, My answer is simple and it may be naive, but here it goes. Say CPQ tanks to 15 like you say and stays there. Then, DEC shareholders will only get $44 and change per share. I say, they will not be happy and could vote down the deal. So, to avoid this, I think CPQ management will do stock repurchase regardless of fundamentals in order to uplift CPQ until at least the deal with DEC goes thru. After that, God knows. That is my plausible answer to you. Take it or leave it with peace. peacelover

To: kahunabear who wrote (20789)	3/8/1998 8:48:00 PM
From: Hector	Read Replies (1) \| Respond to of 97611

It's worth more than $15/share as long as people believe they can buy it and sell it for a higher price. When that psychology changes, we'll be in a bear market and it'll probably go to $5. BTW, it's still a good company as are many, but these valuations we're seeing today are nonsensical. These violent swings in the averages tell me an earthquake is coming. Dave

To: kahunabear who wrote (20789)	3/8/1998 8:59:00 PM
From: john dodson	Read Replies (2) \| Respond to of 97611

So, You think CPQ deserver a PE just above 10 for (reduced) 1998 earnings? Wow! The herd probably will take CPQ down too much, just like it took it up too much. $15 is undervalued by nearly any measure. CPQ has one bad qtr, and all of a sudden the sky is falling. I don't think so, even though, I'd bet my last nickle that many an anal-yst will try and convince the masses this week that that is indeed the case. -John Dodson

To: kahunabear who wrote (20789)	3/8/1998 9:36:00 PM
From: Chris	Read Replies (1) \| Respond to of 97611

Because the market is not as short-sighted as you are.