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

To: Spots who wrote (24639)	4/20/1998 9:01:00 PM
From: Gerald Drews	Respond to of 97611

Spots - Even if CPQ made 20 Million on the deal in one quarter it would only add 1.3 cents to EPS, not enough to even pay the dividend. CPQ has 1.5 Billion shares outstanding, that means they need 15 million in earnings to make 1 cent EPS or about 75 million in revenues ( at 20% profit ) to add 1 cent to EPS. As the company gets bigger it takes a WHOLE LOT OF SALES to make much diff on the EPS. This is why I have to wonder how CPQ can continue to split as some are predicting on this thread and still generate sales growth. I have been long since about 1986 when there were only about 36 million shares outstanding. Jerry