Oak Technology (OAKT) Message Board

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Technology Stocks : Oak Technology (OAKT)

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To: Steve H. who wrote (3994)	4/19/1998 12:10:00 AM
From: Daniel Shaffer	Read Replies (1) of 4335

Is Shareholder lawsuit depressing OAKT stock? In answer to your questions about why OAKT is trading so low relative to book value, it may have something to do with the shareholder lawsuit filed last year. As I have noted in past postings, Sierra Semiconductor was in a similar rut some years back. In the case of OAKT, there is a shareholder lawsuit claiming insiders simultaneously hyped the stock, lifting the stock price, while selling gobs of their own shares ahead of bad news that broke shortly thereafter. In the case of Sierra, I think it also had to do with optimistic hype that immediately preceeded bad news resulting in big paper losses for those who bought on the optimistic hype. Ultimately, the suit was settled with affected shareholders getting a little something per share (I think it was around $1.50 per share--not much). Once the lawsuit was settled, however, the stock took off, more than tripling in price from its low. I just wonder if the uncertainty around the lawsuit could be holding down OAKT's price. Speaking of the lawsuit, does anybody on this thread know its status? I haven't heard a peep!

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