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Technology Stocks : NENG: Network Engines, Inc.

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To: JakeStraw who wrote (107)12/22/2003 11:57:38 AM
From: Howard Salwen  Read Replies (1) of 186
 
This is bogus. The company should not be required to report the content of any negotiation before completion. What if EMC just walked away and said "never mind". It ain't over 'til its over... etc. Further, we could interpret this as a positive event. Clearly, EMC would not spend the time and effort renegotiating if they planned to discontinue the relationship with NENG. On the contrary, it looks like more business will be forthcoming. NENG will lose a little margin on every sale but make it up in volume, right??

My previous comment was a little terse. Let me expand on it. NENG was in negotiations to bring an Exchange security appliance to market. They, of course, did not publicize the negotiations before agreement was reached. They probably would have been sued by their customer had they publicized the existence of negotiations before signing. These deals often require both parties in the deal to jointly approve any publications about the deal. But, we never see any class action suits demanding pre announcement of positive events...
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