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

To: William Hunt who wrote (27506)	6/11/1998 9:56:00 PM
From: John Koligman	Read Replies (3) \| Respond to of 97611

Bill, Thanks for the update. Can anyone provide any further info on why CPQ would need to take a 3.4 billion writeoff for DEC's research and development? I thought DEC sold off networking and Alpha production, what exactly would be left that this sum would cover? Are existing production facilities included here? Thanks, John

To: William Hunt who wrote (27506)	6/11/1998 10:05:00 PM
From: robbie	Read Replies (1) \| Respond to of 97611

Bill, re:<<analysts estimate the company can save $2 billion to $2.5 billion from combining the two companies.>> I knew I could find some good news! So, let's see, if both companies operate at break-even now, and there are 1.5B shares, then the cost savings amounts to 1.34 to 1.67 per share. The combined company is selling at ~17x to ~21x estimated cost savings of the merger, if there is no profit!!!! Imagine when they get their house in order how much profit will be added! There's my spin for the evening. Robbie