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

To: Mark Woolfson who wrote (30272)	8/3/1998 5:02:00 PM
From: rudedog	Respond to of 97611

DEC WAS profitable in 1H98 - see my previous post. They did well over 300M earnings in 1Q, 2Q numbers are obscured by the merger accounting but were apparently even larger, given that the 3 weeks they contributed to CPQ generated on the order of $120M. Given their $13B run rate that is quite respectable - if CPQ had done as well, they would have done over $600M in 1Q98 and we would all be out popping champagne.

To: Mark Woolfson who wrote (30272)	8/3/1998 5:12:00 PM
From: CGarcia	Read Replies (2) \| Respond to of 97611

"Twice the company power" means nothing to me. What does that mean to you? How does "twice the company power" translate into positive earnings? To me twice the company power without doing anything on either side of the merged company means combined earnings and expenses - which would translate into dismal earnings. Mark Compaq bought DEC at a "steal"...They are currently trimming alot of fat, cutting plenty of non essential jobs, and have resolved their excess inventory problems. I have seen their new commercials all over and have been as impressed as I was with the Dell ads. Digital servicing will be a major factor in boosting Compaq's stock price within the first year. Even management stated "We expect the DEC merger to boost the price of our stock $50 within the first year". If you believe their earnings will be "dismal" and you own CPQ stock...feel free to sell, cuz I would be more than happy to buy it from you...as for CPQ's earnings for the next 2 yrs, watch the stock go over $100 sometime late next year...Investing is all about perception of the future...when you see it as down, others who see it as up will buy and as a result be justly rewarded if they guessed right :) Good luck all.....GO CPQ!!!!