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Technology Stocks : CBTSY

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To: Rob S. who wrote (375)12/3/1998 7:39:00 PM
From: Tech CFO  Read Replies (1) of 454
 
As you probably know, CBT's troubles have reduced their valuation only to the industry average as a % of revenues. No downside for legal issues and exposures or what IMO is an even larger risk for them - that the IRS finally takes a close look at their transfer pricing and hits them with a huge judgment. Last time I looked, 70%+ of their revenues were in the US, but they claimed that less than 10% of their income should be taxed here.

Businesswise, holding their highly compensated sales reps now that the stock is in the toilet is going to be a huge issue (can't imagine they'd try to reprice :)

Like watching the Titanic.
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