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

To: rudedog who wrote (45341)	1/26/1999 3:23:00 PM
From: JRI	Respond to of 97611

Rude- Compaq's management should have handled today's announcement in a more tidy fashion....I am a bit confused about what actually is going to be done here....sounds like CPQ's management is still trying to make a final decision... Perhaps, as someone posted, it was because of the leaks in the past week....they had to get it out...(incomplete and all) Now, of course, all is forgiven if consensus earnings estimates are handily beaten, but......A little bit of concern for me (is that) NOW it appears the Street (a la IBM) is ALSO looking for CPQ to make a certain revenue number, not just come thru on earnings estimates (and WE ALL KNOW WHAT HAPPENED TO IBM A COUPLE DAYS AGO)...this new "expectation" gives CPQ less wiggle room to make this past quarter a success (in the Street's eyes)........I feel (and have felt) comfortable that CPQ is going to make the quarter's (earnings)..but make a (particular) revenue target...Hmm.....tougher..........I remain optimistic, nonetheless, but my enthusiam is damped just a bit... As I mentioned before, if CPQ does fall short of earnings estimates(and Kelley attacks!), I will be really disappointed about the timing and handling of (today's) Alta Vista announcement.....Definite loss of credibility....If they make the earnings numbers, but not the revs...I won't be disappointed in CPQ's management, but the stock will likely take a hit...hopefully not IBM-like... Maybe, too, EP can make it all good on Friday, regardless... Remaining bullish here...

To: rudedog who wrote (45341)	1/26/1999 3:38:00 PM
From: rupert1	Read Replies (2) \| Respond to of 97611

Rudedog: Unless you have some other source, I believe it was Lynn, last evening, using a hypothetical example based on her expereinces as a shareholder in other companies who introduced the 12/1 idea. I have not heard of it coming from any media commentator or analyst. Kumar's $2 billion is reasonable but at the lower end of the $2-5 billion talked about in the Street. This figure is based on how AV is right now. It is clear from EP statements today that that is not how AV will look before it is brought to market. It may be a much bigger "elephant" then. The fact is that nobody has said shareholders or CPQ will be issued with any shares of the new company. But from the tone and context of the statements the inference is that at least CPQ will have a continuing beneficial relationship with the AV company. This would seem to require a controlling stake in the new comapny. I think the sheer wieght of shareholding politics will require that shareholders be granted at least nominal amounts of shares and a preferential right to buy a limited quota of shares at the initial offer price.