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

To: Wilson Picket who wrote (47162)	2/6/1999 10:33:00 AM
From: Key West	Read Replies (1) \| Respond to of 97611

Courtesy of Bloomberg-- The good news for Compaq is that according to their 5 year charts, CPQ is up 621.07%. Even better is the fact that Dell is up 15,674.70% for the same period. More of the same to follow? Only time will tell. gene Piccoli

To: Wilson Picket who wrote (47162)	2/6/1999 2:42:00 PM
From: Night Writer	Respond to of 97611

Wilson, If I recall correctly, RJR is or was owned by KKR. One thing KKR does well is LBOs. In general, they buy a company using cash and debt. Reduce the company's expenses, and make it more profitable. Sell 20% or so in an IPO to reduce the debt load on the company. Hold the balance of the stock. Later they sell the whole company to one buyer. They make a ton of money on fees, and owning some of the stock. Most of the money comes from state and municipal employee's retirement funds. ("Greed is good.") The managers of companies they buy do very well. The employees do well in about 50% of the companies they buy. The situation with RJR is much different then Compaq's situation with AV. I don't think AV should spin off to CPQ stock holders for free. I do think CPQ stock holders should have the opportunity to buy AV shares at the IPO price. The bottom line is: All Alta Vista IPO comments are speculation at this point. There are no hard facts on what Compaq is going to do. NW