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

To: John Koligman who wrote (21931)	3/15/1998 8:12:00 PM
From: van wang	Read Replies (1) \| Respond to of 97611

the deal between CPQ and DEC has not being consummated...and it is incorrect to combine the firm's sales and not factor in the capitalization....rite now CPQ's PSR is 1.69 vs. IBM 1.24...PSR is not a very good valuation measure but should be looked at as periphery measure....otherwise you would be buying up all the mainframe guys if you included the share issuance of the CPQ/DEC, the quickness of the integration and the DEC earnings...another issue for caution try First Call and factor in the DEC potential dilution in the short term....its not pretty DEC trades at 23X forward on $2.16 FY98 earnings per share....its PSR is low reflecting its enterprise computing presence and lower estimated growth rate of 10%