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


To: trouthead who wrote (30268)8/3/1998 2:41:00 PM
From: CGarcia  Read Replies (2) | Respond to of 97611
 
"Was digital profitable before the cpq buyout? If not then why do we expect quick profitablility after the buyout?"

Digital was only marginally profitable mostly because they didn't have the advertising power of a Compaq...Now that they ARE Compaq, you can expect Compaq's earnings to be nearly double their regular earnings, not only because they have twice the company power, but they've also corrected their recent inventory overstocking problems. Expect this stock to soar from 4th quarter 1998 through 2000 and beyond.



To: trouthead who wrote (30268)8/3/1998 4:54:00 PM
From: rudedog  Respond to of 97611
 
Digital's 1st and 2nd Q earnings in 1998 were very respectable especially given their announced merger plans with CPQ. They made better earnings as a percent of revenue in 1Q98 than CPQ did in 1Q97. They will do much better from the base of strength that CPQ offers.