Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Lynn who wrote (47587)	2/10/1999 10:15:00 AM
From: rupert1	Respond to of 97611

Lynn: That snippet was not self-explanatory. I read it as an answer to the specific question. On the broader question of Alta Vista. I believe, like you, that it represents a danger to the stability of CPQ share price from retailers and day traders, but also because the nominal value of AV shares on the CPQ Balance Sheet will always be treated with suspicion by analysts as being potentially overinflated and volatile and will further obscure the true CPQ picture. There is a near-term danger that CPQ may be drawn into ill-advised expenditures to develop AV quickly; danger that it will pay too high a price for acquisitions in the current over-heated market and also danger that the whole AV adventure will fail given the headstart enjoyed by some of the other portals, given the relative small size and poor reputation of Shooping.com etc etc I would think that CPQ regards AV primarily as a marketing tool for CPQ products. It would make sense, therefore, that CPQ retain as much of the shares in AV as possible. If it wishes to acquire or join in partnership with world-beating content providers or e-commerce operations it must have shares to trade with them. The initial offering of shares should be used to raise cash for AV to get up to speed.