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: ed who wrote (23008)	3/22/1998 6:50:00 PM
From: Hugh W.	Read Replies (1) \| Respond to of 97611

Good point, ed!

To: ed who wrote (23008)	3/22/1998 7:11:00 PM
From: ed	Respond to of 97611

To Mr. Night Writer: The reason I threw the bubble guns for you to chew is want to show you the followings : 1) CPQ had the highest profit margin comparing to IBM, HWP, DELL 2) CPQ got a good deal of merging with with DEC, with DEC's Market CAP/ Revenue is only .5 comparing to IBM=1.25, HWP=1.5, DELL=3.5 .. 3) CPQ is much productive comparing to DEC. With 70000 employee, CPQ generate an annual revenue of about 2.5 billion, while with 50000 employee, DEC's annual revenue is 7 Billion. This only indicated to me that there are lot of fats to be cut in DEC to bring its revenue per employee in line with CPQ, and my estimation is around 20000, and a saving of 2 Billions $ over there. 4) Comparing with DEC, IBM, HWP, DELL, CPQ had the lowest PE at this moment, around 18, while DELL had the highest, over 44. This is based on the previous performance, the future is up to everybody's guess. 5) DELL had the highest market cap/ revenue ratio ,around 3.5, with the highest PE, it is well over valued. 6) DEC has been profitable consistently every quarter since Dec of 1996.