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Technology Stocks : Vignette Corporation (VIGN)

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To: MGV who wrote (609)3/21/2002 8:42:30 PM
From: Hungry Investor  Read Replies (1) of 628
 
MGV,

I'm still hesitant. I hadn't expected that they would go into the crapper quite this badly. They should be trimming ALL the fat right now, so they can have a profitable business model as infrastructure spending increases in the future. My guess, based on what they have done to date, is that they will pare enough to get to the current objective - breakeven, but not enough so that they will be profitable. Then they will blame the sales line.

Cash is holding up OK, but the cash value of the entity (yes the price is so low and the results so disappointing we can talk about this) is a little north of $1 per share.

People will continue to evaluate them in this manner until they can show profits on the bottom line - and I dont mean as adjusted for everything under the sun (stock comp, depreciation, other "special" one-time charges). You can do this until you are blue in the face - you still dont measure up to more traditional companies that in fact look like better investments in today's markets.

H.I.
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