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

To: Andreas who wrote (24516)	4/17/1998 10:00:00 AM
From: Spots	Respond to of 97611

>>CPQ stock cannot, will not and should not move up or down based on developments with dec at this time. Andreas, I agree with all that you say except that CPQ probably does suffer some downside due to that same uncertainty, that is, it is not quite as totally free- running as you say. It's fairly typical of the buying companay to be held back in large mergers (whether justified or not). Look back at Tandem/Compaq last year for just one such example. This is not to disagree except in this most minor way. You've put it very well. I wouldn't expect CPQ to completely determine its own fate till after the buyout's a done deal, though (or falls through). Spots

To: Andreas who wrote (24516)	4/17/1998 8:31:00 PM
From: Mike Torrence	Read Replies (1) \| Respond to of 97611

What I see is the market penalizing CPQ for deciding to do the deal with DEC in the first place (negative participation in the recent tech runup) then penalizing CPQ again when its future partner kills their number. The market really seems to feel suspicious about the stock. I don't know if its because the market doesn't trust Mason any more (are his numbers real? is he real?) or if it thinks the enterprise market is over CPQs head or that DEC is just too big an institution to be successfully assimilated by CPQ. Whatever it is it's keeping us stuck and, with a flat second quarter guess by the company, may keep us stuck for a few more months. (I hope it's only a few months.)