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Technology Stocks : Sagent Technology, Inc. (SGNT)
SGNT 21.760.0%Aug 30 5:00 PM EST

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To: MGV who wrote (118)2/7/2000 11:34:00 AM
From: Carl R.   of 220
 
MGV, I will concede that there is some validity to your point that management needs to have some concern about the stock price, and if the stock were still languishing around 8 there would be a great deal of validity to it. The fact is that the company's stock has kept pace with the growth of the company (sales have doubled since June, and the stock has doubled since June), and that is what you normally expect. The fact that MSTR has inflated it's stock like a great big pump and dump does not make it a good example. It will be interesting to see if Sailor uses his now inflated stock price to make a huge number of acquisitions. If he doesn't, eventually the air will come out of the balloon.

As for the other reason you gave, retaining employees with options, I imagine that MSTR employees are currently very happy. If the stock stays flat at these levels for the next several years while sales catch up with the stock, will the employees still be happy? I think that for employee retention long term the best approach would be for the stock to appreciate at a rational rate that approximates the growth of the company.

Carl
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