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

To: geoffrey Wren who wrote (681)	7/22/1999 10:12:00 AM
From: Rick	Read Replies (1) \| Respond to of 782

geoffrey - as far as the stock being down, keep in mind it ran from 17 to over 20 immediately preceding the announcement. so, to me it looks like it ran up on spec that the market would react positively, and went back down on the subdued reaction. part of the runup was probably speculation that the change increases the likelihood of a buyout. i bought more today at 17.5 bringing in the internal guy is very consistent with preparing the company for sale. if you are going to sell the company, it would be foolish and expensive to hire top talent from outside - the bottom line is that to lure the talent you have to give lots of options which dilutes other shareholder interests. it looks like they have the operational talent in place and the new guy will look at how to get the best value out of the business, including looking at buyouts, restructuring, etc. by my calculations, it is an attractive situation to buy. the downside is the new guy fails, and they sell the company. the upside is he succeeds and they sell the company. i believe either way, it sells at a premium to todays price. i do not believe the new guy is in place for long term management, but it would be a negotiating mistake to admit this publicly. cheers. rick.