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Technology Stocks : i2 Technologies

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To: PanzerGeneral who wrote (315)4/22/1998 10:23:00 PM
From: Timoteo  Read Replies (1) of 2339
 
You're right. The stock distribution will eventually have a negative impact on the stock price. If anyone doubts how this can happen to a leading-edge company, do a chart of Ciena Corp over the past year. The other issue which the software cheerleaders seem to ignore is their own accurate assessment that the product is in fact not a simple one. It takes well trained salespeople receiving nice bonuses to sell it to simpletons who don't understand how good it is. It takes well-trained support staff to make it work and both of these factors weigh on the bottom line. i2 makes it very clear in their SEC filings the challenge these pose. That is why insiders were selling when the stock was in the 50s. On the other hand, maybe everything will go right and the market will never correct. If so i2 could see 100 in six months, but I think it'll see 60 first. Time and earnings will tell.

Best Wishes,
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