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Technology Stocks : SDL, Inc. [Nasdaq: SDLI]

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To: pat mudge who wrote (2803)9/16/2000 8:34:44 AM
From: Kenneth E. Phillipps  Read Replies (1) of 3951
 
Isn't it an effort to fool the public sector into giving the spin-off a high valuation so they can use the shares as collateral --- all to benefit the mother company?

Hi Pat. On the Nortel thread, we are asking some of the same questions. This spinoff, as most spinoffs, seems to be an attempt to get increased value from the components business and use that increased value to benefit the systems integration business. Nortel is spending a lot of money right now to increase its component business so by next summer, they should have capacity to sell to new customers? Who will those customers be if they are not selling to their direct competitors? That is question we are asking and don't know the answer. Of course, by next summer, the IPO market may not be the same especially if some of the new startups fail.
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