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

To: Gerald Drews who wrote (23613)	3/29/1998 11:47:00 PM
From: Charles Skeen	Respond to of 97611

Re: <<<what are the DEC shareholders going to do with the cash and CPQ stock?>>> Let's face it. A lot of (if not most of) DEC stock is already in the hands of the arbitragers, who simultaneously sold CPQ short as they bought DEC. When the merger is finalized, they will simply deliver the CPQ stock they receive in order to close out the short position. IMO, most of the price action related to the merger has already taken place, so I would not waste time worrying about it. Charlie. PS. Through indecision or inertia, I am still holding on to my DEC stock. Actually, there is another reason -- the desire to capture the discount that now exists versus the value of the CPQ offer. I think CPQ-DEC will be a great company, but I will not commit to holding the CPQ stock that I receive -- I think that under current market conditions one has to have a flexible attitude.

To: Gerald Drews who wrote (23613)	3/30/1998 12:33:00 AM
From: James F. Hopkins	Respond to of 97611

Gerald; RE > I think much of the shorted CPQ is probably DEC shareholders who intend to use their CPQ shares to close their short positions. << that some bought DEC ..and shorted CPQ is a likley play..but a risky one. No matter how people think it's in the bag just the way it was spelled out..I've seen to many deals re-negotiated to trust that. Lots of stuff is planed behind closed doors and more than once people who jumped the gun have been burned. Looking for something for nothing is a good way to fall into a trap. Been there done that. ----------------------------------- Both these stocks are subject to some wild manipulations till things are final..If any one is betting one way or the other they will likley not get in much troble if they did not go on margin..if they went on margin then a lot could happen to cause them problems they never counted on. ----------------------------------- I guess the worst being they have to wait to get CPQ stock to cover..who ever lent out that stock can call it back any time they want, how will they feel if the broker says hey.."I got to buy you in"..even if they are not on margin now..that could put them there in a heart beat before they are ready for it, and if they don't have some reserves..well I hope they didn't pay to much for DEC..as they could get in a crack and have to sell some of that to cover CPQ ...if you sell what is not yours you better have some cover more than just the hope you won't have to do it before the deal is done..there are sharks in this game and they feed on greed, fear, and any weakness they see. -------------------------- If I were short naked waiting on cpq shares to cover with I'd at least be getting me some calls. ----------------------------- AS for the ones bought DEC , but shorted CPQ aginst the box.. I figure they done covered..and have made out good..and will likely plow the profits right back in. Only by getting CPQ back up do they realize the gains they want, but a lot can happen between now and payday. There has in the past been some fund mangers and institutions really stung bad with the idea they could buy one short the other..the amount they can go on margin is very limited..and if any did they can bet someone is looking to see if they can be squezzed one way or another.. it's cut throat on the high end, and who has power ? So mr x thoght he was cute..we will go aginst the box on Dec push CPQ up..force him on margin till he has to sell Dec.. then cover DEC , call in our CPQ and then go aginst the box on it and wipesaw him to pieces..the ones who had the resorces to hold both stocks..and short aginst the box have the power to pick off speculators who tried it on a shoe string both left and right, I've seen it before. Jim