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Technology Stocks : RATIONAL SOFTWARE- BUY OR HOLD

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To: John F. Dowd who wrote (2509)7/1/1998 1:16:00 PM
From: diana g  Read Replies (1) of 3115
 
This doesn't seem likely to me, John.

For one thing, they Don't need money, as we all know.

And they're a lot smarter than you give them credit for.

I think the 'Blank Check' shares are most likely meant to be an anti-takeover tool. This may or may not be good for us as stockholders, but it's not the half-wit play you describe.

In regard to yesterday's and today's price drop, it looks like someone is selling, all right. Could be for any number of reasons.

If some entity had been accumulating a position with takeover intentions, they might see Proposal#2(Blank Check shares) as discouraging and decide to sell and go elsewhere.

Or someone with a large position might see what they think is a better opportunity in United Widget and rotate out.

Or maybe there's Big Trouble at the company, and 'Someone-Who-Knows-What-We-Don't' is selling.
Could be. But I doubt it.

Opportunity always includes risk.
I'll be buying when it looks like the selling is done.

regards,

diana
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