Waiting for the auction hammer on some valuable assets..
You may be right, Vanni. It is increasingly difficult
to take Corel's management seriously. The reason I am hanging in there
with Corel stock is that discounting the present management,
their proprietary intellectual assets, Corel's software programs, have
got to be worth a bundle. Corel Draw, Quatro Pro, WordPerfect, etc.
are widely used, excellent programs, and there are any number of
companies out there who do not want to see Microsoft without any
competition. Netscape may be looking for a way to break out of its
narrow niche, Sun may see an opportunity, etc. etc.
If Corel were acquired by a company with positive turnaround
experience, it could turn Corel into a cash cow by just cutting
management, marketing, and R&D expense severely, while
laying off an appropriate number of employees.
My guess is that just this kind of turnaround will happen, either
under present management (doubtful] or as an acquisition.
I've only been following Corel for 9 or 10 months, but it seems
clear to me that Cowpland is too hooked on starting new things
up and too disinterested or incompetent at managing an on-going
business.
I once bought America West stock after it declared bankruptcy,
because as a frequent flyer, I felt it had a lot going for it and would
emerge stronger than ever from bankruptcy. Later, I sold the stock
after reading multiple warnings from experienced analysts that
"common stock is nearly always wiped out in a Chapter 11
reorganization, implying that anyone buying and holding America
West stock should have their head examined.
Guess what: if I had just followed my own instincts and ignored
the know-it-alls, I could have made 500% on my investment by
holding on to it for another 18 months. |
