The CEO statement was from an authentic internal correspondence.
One more mail between two employees, a reflection of what employees are thinking-they wish to lock in more options at this price:
a few things to note:
- while one of the analyst (bt alex. brown) downgraded vrts,
another (warburg dillon) has raised vrts from hold to buy.
- legato is taking a massive plunge because they got downgraded,
with the analyst citing veritas as doing a lot more business in the
legato market in '99, making it tough for legato to compete.
- the merger is supposed to be accretive in the 1st year without
exploiting any product synergies. that means our earnings will
be higher, even with more shares, than before this purchase.
if veritas keeps the same p/e as before, that should cause the
price of the stock to go *up*, not *down*.
The price hasn't yet reached my target of this drop. think of it as a great time to exercise your vested options and avoiding the AMT.
and lastly, let's all hope this price drop holds till the next employee stock purchase date, so we can re-lock-in the espp price at something nice and low. not much chance of that, i know, but we can always hope. :-) |
