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

To: Stephen who wrote (22418)	3/18/1998 2:43:00 PM
From: broken_cookie	Respond to of 97611

Stephen, Those ideas were put forth by Herb Greenberg both before and after he joined thestreet.com. He refered to the practice as "saniflush" accounting where a company makes an acquisition and takes a charge to cover up operating loss. The SEC sent a strong suggestion to 3Com to restate their earnings and to take the medicine for their channel stuffing. Almost immediately after that, CPQ comes out with a warning. I have even heard suggested that this potential writeoff was the only reason DEC was acquired but I think that's a bit extreme if not absurd. I don't think DEC shareholders have a thing to complain about until CPQ's under 10$/share. I mean what's DEC without its Alpha and networking business, a repair shop for PDP-8's. :) Regards