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Technology Stocks : Digital Equipment Corp. (DEC) -- Ignore unavailable to you. Want to Upgrade?

To: Tom M who wrote (3165)	6/20/1998 1:12:00 PM
From: John Sladek	Respond to of 3276

Tom: Good post - I am a firm beleiver in two-sided analysis. One question I have with the CPW/DEC merger is what are the financial impacts of restructuring? How much will it cost to pay severance to employees that are deemed to be redudnant by the new managers? This would include golden parachutes for the senior management some of whom we know are stepping down. What about the costs of integrating incompatible management information systems? As everybody probably knows, sometimes these types of charges can be a major drag for several quarters after the merger, although the companies like to get all the bad news out of the way as soon as possible. Do you have any idea of what the impact on CPQ might be? Another concern. CPQ has just bought DEC, and mot of us would agree that there are some problems with DEC, some say serious problems. So obviously CPQ is going to have to spend some money fixing DEC. What is their plan? Are their goals realistic? How much will it cost? How long will it take? Regards, John Sladek

To: Tom M who wrote (3165)	6/22/1998 2:48:00 PM
From: hossein hosseini	Respond to of 3276

Tom: Excellent post. I have to agree with you on all points raised. As for the TA, yes, there was a typo on my part, the stock is weak technically based on the lower highs. There is however 2 more points to consider, 1. CPQ is almost always the volume leader on NYSE 2. CPQ is loved by many mutual funds. DEC did not have these advantages. These are facts as we see the market today. Based on all that have been said so far, I agree CPQ is a long term hold (2-3 years) and a short term trade 27 - 29.50. For now, I am just trading it. Good luck, Hossein