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Technology Stocks : BMC Software

BMCS 0.00520

-36.6%

Nov 3 2:14 PM EST

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To: john dodson who wrote (1298)	7/22/2000 12:09:59 AM
From: RGM	Read Replies (2) of 1492

John - I noticed your posts here and on CA re the times sales criteria. I believe the times sales ranks at the same level as the book value criteria in that both hardly have the importance of cash flow or "recast" cash flow. A portion of the "recast" cash flow method consist of adding back the funds from what the owners of the acquired company have been taking out of the business. The assumption is the owners of the acquired business are replaced by salaried managers. I think that $ amount for CA would be very significant for this component. I agree with what you said in your CA post in that times sales criteria is "meaningless". I bought into both of the companies last week, then sold my positions for a few hundred dollar loss after watching the times and sales (T&S) charts for these two companies for a day or two. My T&S listing indicated that small investors were buying and institutions were selling (block transactions). I don't believe BMCS or CA are being considered by IBM for acquisition. IBM is a hardware focused company. They are not interested in taking on an additional set of problems by acquiring BMCS or CA. IBM's track record in the software side of the computer business is nothing to brag about (1980s and 1990s). Please correct me if I am wrong. Bottom Line - both BMCS and CA shares are dead money for a minimum of 3 months. During this time frame, I believe, they are going to establish new lows from where they are now. The trick is to determine where is the bottom? Rob

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