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: William Hunt who wrote (25027)	4/27/1998 1:03:00 PM
From: greg nus	Respond to of 97611

William Hunt, US Treasury to buy 50 billion in US treasuarys to invest the buldging Social Security payments flowing in from a brisk full emplyment economy. Compaq is the number one PC seller and the cheapest boxmaker security compared to IMB, HP, and the non Jock holders Dell and Gateway. CPQ's announced stock buyback is equalivant to delution from the CPQ stock portion of the DEC deal so the effect is no dilution. Now High Tech's biggest constraining factor is insufficent Qualified Personell. Pheiffer just bought himself a tripple workforce of quality people. They can sell, but after the sale they can maintain and service hugh systems. Outsourcing system mainataince and service is the current trend world wide. For every $1.00 in sales $7.00 to $8.00 is spent on service and maintaince. Paine Weber estimated DEC's Service business valued at $3 Billion, and an additional $3 Billion for the maintance business. CPQ should be trading at a premium price over the price on the announcement date of the dec meger. Cpq will rock as soon as the analists realize CPQ's potential and the DEC merger goes through and the Wall street houses remove the lock on CPQ by reverse there abritrage postions. The classic arbitrage move is to sell the acquirer and buy the acquired, by doing they protect the premium paid to acquire. Upon closing of the merger it will be buy CPQ outright. CPQ is close to FTC approval and has already cleared the hurdel in Europe. The DEC Intel approval was the last hurdle to clear.