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Technology Stocks : Avid Technology

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To: uptick who wrote (521)	6/17/1998 2:12:00 PM
From: Trader Dave	Read Replies (1) of 777

Prudential analyst bullish? now there's a big surprise! let's see he got a big pay day for bringing them public and if prudential represented avid on the purchase and it was only a 1% fee, he'll probably get a nice $150k bonus when the deal closes. The industry people we're talking to sight this as bizarre and defensive. Is Avid going to sell the $200k Symphony product which is incomplete and keeps blowing up? or the $100k Softimage product which needs loads more dollars and has no industry presence? How much goodwill will have to be amortized. the company is misleading the investment community by claiming that the deal would be accretive if you exclude goodwill. What nonsense, it's like saying "if we didn't do the deal, we wouldn't be spending money." A lot of the sell side analysts are waiting to hear back from the company so they can properly adjust their fy 1998 and fy 1999 estimates. It won't be pretty if estimates for next year go from $1.95 to $1.60. Last i checked, institutional investors don't like long term dilutive deals with significant execution risk. Oh well, their last major acquisition only screwed the company up for 2 years. TD

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