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: jim kelley who wrote (25743)	5/7/1998 1:06:00 PM
From: Rob Rob	Respond to of 97611

Jim, Go back and read their 1st qtr report. They have close to seven billion dollars now. They are looking at another ~1.5 B from DEC after the merger. They are flush with cash. Go read the public record. Rob Rob

To: jim kelley who wrote (25743)	5/7/1998 1:08:00 PM
From: Pierre Aydin	Respond to of 97611

<<They have a ~ 2B for DEC layoffs>>, It's not like they are gonna give 2B in one shot, remember these are charges against earnings, so the money might not be spend totally and still in the bank, who knows what will happen in six months. Pierre

To: jim kelley who wrote (25743)	5/7/1998 1:09:00 PM
From: rudedog	Respond to of 97611

Jim - CPQ has $7B in cash, gets another $2.7B from DEC after the merger (counting the $700M cash from the Intel settlement). I don't think they will have a cash shortage, the DEC purchase is almost cash neutral, as has been covered extensively here and elsewhere. They also get an additional $1.5B in tax carryforward credit to use in upcoming years. BTW the price protection comes out of contra-revenue so it shows up as increased SG&A and does not affect cash. Does affect profits though...