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

To: Roads End who wrote (25145)	4/28/1998 6:44:00 PM
From: PCSS	Respond to of 97611

Joe Kernen of CNBC just said he will reporting shortly on the very positive remarks by EP made after the bell

To: Roads End who wrote (25145)	4/28/1998 6:46:00 PM
From: Richie	Read Replies (1) \| Respond to of 97611

Very interesting......that poses a question which I will have to look into, or maybe someone can shed light on how does a CPQ-BAY measure up to the gorilla - CSCO. RichieH

To: Roads End who wrote (25145)	4/28/1998 6:51:00 PM
From: Satyr	Respond to of 97611

I'm not really a fundamentalist so I don't have a strong opinion. I guess it makes sense in a way but i would be quite surprised to see CPQ take over another company so soon. It looks to me as if they have enough on their plate right now.

To: Roads End who wrote (25145)	4/28/1998 7:20:00 PM
From: John Koligman	Read Replies (1) \| Respond to of 97611

Hi Steve, I have also used Bay as a trading vehicle fairly frequently, and have been following it for the past two years or so. I just don't see CPQ buying Bay at this time. Bay has repeatedly stumbled, they were in the teens after the east coast/west coast merger between Wellfleet and Synoptics was botched by Ludwig and Severino. They both stepped down and House was brought in from Intel. The stock popped from the teens up to 41, and Bay has dissapointed since that time, despite House's assurances that things are looking up. They missed the last quarter, but House is still saying their Accelar product looks promising. Anyway, Cisco still appears to be eating their lunch in the enterprise business, and I think CPQ management has enough on their minds right now dealing with DEC and the PC inventory problems, let alone taking on Cisco. Also, I think a takeover would have to be in the 5-6 billion range, which could turn out to be more than they pay for DEC once cash/fab sale/tax loss carryforwards are factored in. Bay has been rumored to be in play for over a year now, the recurring rumor was that Lucent would buy them... John The other thing is, CPQ just stated that one reason they were buying back stock was dilution, so why do it all over again? Also, I think the stock would take another hit with a buy like this, and hang question mark number two over CPQ's head as to how they could successfully integrate a double merger in different tech areas at the same time....