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Technology Stocks : CATP-The stock is taking off

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To: JLIHAI who wrote (754)4/13/2000 11:58:00 PM
From: Rick   of 782
 
gents...

it doesn't matter whether CATP is at 12 or 20.....the price that INFY or another acquiror would pay would be based on it's value in the private market.

CATP is very undervalued right now, and acquirors know it....they could not convince CATP to sell for less than 25 dollars or so. granted CTP might have more leverage if the price were higher, but as an independent, CTP is now in a perpetual and infinite state of undervaluation. the only way to get back in the streets favor is to do everybody a favor and sell the company.

the reasons for the undervaluation are:

1) historically corrupt, deceptive, and ineffective management.
2) too many dilutive options outstanding
3) fierce competition for employees; high turnover
4) high wage costs
5) paying today for yesterdays accounting sins; overbooking revenue in the past forces underbooking in the future

the second quarter should be much better, and should bring the stock back a little, but CTP will never regain a high valuation or momentum status........................................dreaming about this is like a fat middle aged man chasing teenage girls.......it's a nice fantasy, but the opportunity has been lost, and one only looks like a fool trying.

CTP's best bet for shareholder return is to sellout, or spinoff the ecommerce unit.

if it remains independent it is a value stock forever. you won't lose money but there are much better investments.

rick.
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