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Technology Stocks : Phoenix Technologies (PTEC)

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To: Jules B. Garfunkel who wrote (3135)2/12/1999 9:26:00 AM
From: Mark Brophy   of 3624
 
You're too far ahead of the curve.

It took the SEC and the investing masses several years to figure out the accounting scams at IBM and it will take several years for the masses to figure out that Phoenix has a division growing 67% representing 15% of the company. Being right isn't good enough. You also must figure out when the train will leave the station.

Phoenix recently lost a key employee who was recruited by the former Award V.P. of R&D. He had been an engineer at Phoenix for 8 years and spent 6 of them training part-time for an MBA. Part of his training consisted of interviewing Jack Kay and other top executives. If I were in Jack Kay's shoes, I'd ask him to return the favor and submit to an extensive exit interview process. Phoenix needs to know why he considers it a better investment of his time to be an engineer at another company rather than to have an MBA-type job in sales or marketing at the Phoenix IP group.

A CEO do accomplish a lot at exit interviews. In a similar situation, Scott McNealy spoke at length to a member of the Sun hockey team and came to the conclusion that he should make a major push for Java. The team was the best in the Silicon Valley at the time despite having many of the players in their late 30's, including McNealy. The camaraderie allowed him to get an interview that was more frank than usual.
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