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Technology Stocks : Lason(LSON)-Interesting Turnaround Candidate???
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To: Luce Wildebeest who wrote (1)12/9/1999 11:41:00 PM
From: WTSherman  Read Replies (1) of 28
 
I am not sure what to make of LSON these days... People I know in the company say that things are pretty much on track. Yet, the price drop has been very sharp and I find it hard to believe that this is just tax loss selling. I know that the management is very conscious of the share price and everyone in mgmt is heavily leveraged with options that are under water, at this point.

I'm not sure how much value I would put in the book value numbers. Most of the company's they've bought are service company's of one sort or another, so the "book value" is suspect to me.

I did read a disturbing report that mgmt was guilty of a high degree of nepotism, with lots of wives and relatives getting business from the company.

The thing to be careful about with a company like this is that their growth rate is totally based upon acquisitions, not actual growth of the businesses which they own. This strategy tends to fall apart at some point as the need to acquire creates more and more management problems as too many new purchases need to be integrated. Also, at some point you run out of good candidates to purchase. Both of these problems caught up with Danka and Ikon.

Bottom line is that I've been tempted to take a shot, too. But, the trend is not good and I don't understand why.
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