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

To: Aitch who wrote (45305)	1/26/1999 1:10:00 PM
From: Jan Crawley	Respond to of 97611

Please publish comments of value by Faber.... The comments was: It will happen, just don't know when, and how exactly! "it" = spin off, brings in content providers...etc.

To: Aitch who wrote (45305)	1/26/1999 1:11:00 PM
From: Kenya AA	Read Replies (1) \| Respond to of 97611

Aitch: Well, here's the important part ... Nobody, not even Compaq, knows how the spin off is going to be handled! Gives you a lot of confidence in management. doesn't it? K

To: Aitch who wrote (45305)	1/26/1999 1:11:00 PM
From: csm	Respond to of 97611

He said value of AV might be around $5B, you can do the math, he says that worth about $3 and CPQs increase today is at the upper range of the value of AV [in its current form I might note]. Stuart.

To: Aitch who wrote (45305)	1/26/1999 1:11:00 PM
From: Mike Fredericks	Respond to of 97611

Disclaimer: I am NOT watching CNBC, and have no knowledge of how this spinoff is REALLY going to work, but I decided to play with some numbers just to guess at a multiple to see how many shares of AV we would get. Assumptions: At time of Spin-off, the shareholders will get $2 Billion worth of stock in AV. The remaining value will be held by CPQ and/or sold off as an IPO. This gives existing shareholders around 1/3 of the company if the $6BB estimate of AV's future value at time of IPO holds. Current number of shares of CPQ stock - Approx 1.7BB based on simple dividing Market Cap/Share Price as reported by Yahoo. IPO Price of AV probably somewhere around $20. This is a complete guess. $2BB in AV stock/20 per share = 100 Million Shares 100 Million shares of AV/1.7 Billion sh of CPQ = a ratio of .058 Meaning that for every 100 shares of CPQ, you'd get 5.8 shares of AV, with fractions rounded down. Again, this is a WAG just designed to try to come up with a ballpark figure. You can change any of my numbers and recalculate if you'd like. -Fred