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

To: John Koligman who wrote (54342)	3/22/1999 4:32:00 AM
From: rupert1	Respond to of 97611

John: IBM made a sale to CPQ. It sells more drives to CPQ than to DELL. It said that as an inducement to DELL it would consider selling or licensing other products to DELL, which DELL does not have. However much anybody tries to put a super-positive spin on this, the deal showed up DELL's weakness. I think it is a huge jump in logic from this deal and the two companies explanation of it, to the idea that they are about to give anything to each other. Dreamers might want to speculate about synergies, but the bottom line is that investors in both companies would lose a chunk of their p/e and therefore their share price for a very long time. In the meantime, CPQ is just as likely/more likely to grow/change through merger and acquisition.