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To: SecularBull who wrote (85184)12/14/1998 10:28:00 AM
From: Fangorn  Respond to of 176387
 
LoD,

Re CPQ's low multiple...

DELL's ttm PE 70.5

CPQ's ttm PE -23.46

Boy, that is alot lower!!! Buy CPQ now!!! VRG (that's Very wRy Grin)



To: SecularBull who wrote (85184)12/14/1998 12:23:00 PM
From: Chuzzlewit  Read Replies (2) | Respond to of 176387
 
LOD, CPQ has a negative multiple, because earnings are in the red! The only way they can demonstrate earnings is by lumping a lot items into "non-recurring charges" like in-process R&D and restructuring and merger related expenses. That way you get the analysts to ignore the real costs, and hope that investors have a short memory.

[** OT ** Warning: blatantly political comment follows. That is precisely what today's NY Times reported in its poll of what many leading Republicans believe regarding the American electorate. Voters have a short memory and will forgive them in 2000, but if the election were held in a few months the Republicans would suffer mightily.]

TTFN,
CTC