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Technology Stocks : CATP-The stock is taking off -- Ignore unavailable to you. Want to Upgrade?

To: geoffrey Wren who wrote (672)	6/27/1999 7:09:00 PM
From: Bret Masterson	Respond to of 782

Economist press indeed positive. Buyout rumors seem to be what's driving the stock now though. A couple points seem pretty apparent to me: (1) There have been so many buyout rumors that it is obvious that CAPT is talking to many players. (2) Professional service organizations like CATP are always more prone to be "leaky" in terms of information flow, compared to more typical companies. Because of this, every serious discussion with a potential suitor gets posted a rumor board somewhere. I've heard/read rumors about EDS and IBM that both seemed plausible enough. (3) CAPT definitely trying to quickly right a troubled ship a. Lots of negative flack from current and former CAPT employees about current management, coupled with anecdotes of significant numbers of personnel thinking of leaving. b. Personnel defections will indeed hobble the company if the can not get their stock price up fast. Way too many start-ups needing the kind of talent CAPT has, if if all CAPT employees' stock options are out of the money, there is no reason or leverage to hold them in place. c. Moves to add add new, seasoned operating talent to management as well as buyout rumors seem to indicate that CAPT understands this too, and is deep into the process of selecting the best strategy and/or buyout partner to help right the ship. (4) A very speculative sort of logic would dictate that things may turn around soon for the CAPT stock price. (E.G. CAPT will either accept a buyout offer in the very near future, or CAPT will re-establish earnings momentum, and hence increase the stock price. Argument goes something like the following: a. Way too many rumors to think that CAPT hasn't already gotten some sort of an rough or indicated offer. b. If next quarter's earnings are expected to again hammer the stock price, CAPT has strong incentive to accept one of the offers. Offer might not be as high as CAPT wanted, but there really would not be much of a choice. c. Other possibility is that CAPTs financial situations is indeed turning around, which would lead management to delay or perhaps postpone indefinitely any buyout. d. The beauty of it is that either way we should get a strong movement up.

To: geoffrey Wren who wrote (672)	7/8/1999 6:59:00 PM
From: Ram Seetharaman	Read Replies (2) \| Respond to of 782

Here is some good news! The Investor's monthly for July 1999 put out by S&P has ranked CATP 5 stars - for fair value and 3 stars for S&P ranking - and inducted CATP into the Platinum Portfolio. CATP's fair value is $ 35.9 - it will eventually get there in a year or two. S&P fair value model is a quantitative model that seeks to identify undervalued stocks. Their calculation is based on fundamentals such a stock's profit growth potential, price to book value, return on equity, and dividend yield relative to that of the S&P 500 index. Group 5 (includes CATP) is the highest and contains stocks considered the most undervalued.