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Technology Stocks : BORL: Time to BUY!

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To: Sam Scrutchins who wrote (8525)1/13/1998 6:13:00 PM
From: Marc Slovak  Read Replies (1) of 10836
 
I'm mystified by the lack of market response to the Borland announcement that they will meet or exceed earnings. We live in an age where shareholders feel entitled to bring suit on almost any price decline for almost any reason. Misleading statements issued by companies are especially problematic - Phil White stated a couple of days before the Informix 1st quarter loss that he expected the company to increase by 30% in the coming year - need I say more. This being the case, companies are extremely reluctant - with just cause to say anything that might be misconstrued. Unless Borland management is brain dead or have a death wish then the statement about future earnings is very important. It is a virtual certainty that they will beat estimates - and my guess is that they will beat it by a nice margin. If they don't then they've issued a call to arms to every litigator and the suits will follow. That a positive response in price did not occur leads me to believe that the uncertainty about the VSGN deal is what's holding us back.
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