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Technology Stocks : RATIONAL SOFTWARE- BUY OR HOLD

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To: Thomas Haegin who wrote (2954)9/3/1999 4:24:00 PM
From: Hans-Erik Eriksson  Read Replies (1) of 3115
 
Hi Thomas,

> BTW, Hans-Erik, do you see any Y2K-related **REAL-LIFE**
> (not WS-brabble) spending shifts in your business dealings
> with customers? Really just asking out of curiosity :-)

No, not really -- but there has been some "volatility" in the
Swedish RATL office with managers shifting jobs. From where I'm
operating, in the training market, it seems to be "business as
usual" -- more and more companies standardizing on RATL
tools and ideas and the overall market just increasing and the
question of Y2K isn't even mentioned.

I think the current downturn has been due to:
1) the high P/E of RATL is not good when there is speculation
of higher interest rates.
2) acquisition jitters. There is speculation that RATL is about
to acquire "someone" (I know which company I would like them
to acquire...).

I really wouldn't be surprised if RATL in fact did another
acquisition -- it is the quickest way to build a much larger
company and I think they have the management to succeed with
it. WS doesn't seem to fond of the idea though.

Long as always,

/Hans-Erik
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