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

To: Elwood P. Dowd who wrote (58272)	4/17/1999 12:45:00 AM
From: Harry Landsiedel	Respond to of 97611

Elwood P. Dowd. Re: ".... do you envision CPQ actually distributing shares of AV to CPQ shareholders? Yes, eventually, but not at first. I would see it as a 12 months to 18 months after the IPO for two reasons. Keeping the float small will drive up the price, giving CPQ more monopoly money to play with and build AV so it will be worth something when we get shares. Second, a 12-18 month will benefit CPQ to have a base of loyal stockholders and allow the company to finish the integration and complete the new e-business strategy. Do you expect that CPQ will come to the shareholders meeting laden with news of AV and other good stuff to offset a riot? I think EP et al have already said too much about AV before they were ready. I think they should focus on answering questions about what happened and demonstrating the we WILL NOT see this sort of thing next year and why. Finally, they have to demonstrate that what happened had NOTHING to do with the integration of Digital/Tandem. If they do all those things people won't care as much about AV and will not riot. IMHO it would help if they became more conservative in their guidance to the street and underpromise and overdeliver for a change. Rosen should take Mason AND/OR EP, whoever is too aggressive, out to the woodshed over the 1Q as in "once more and you're out." HL