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To: Lane Hall-Witt who wrote (1614)	12/8/1999 3:42:00 PM
From: Susan Saline	Read Replies (1) \| Respond to of 2802

hey lane ... I just bot that PVSW back (12 1/2) ... partly because of that news and partly because it double bottomed today .. technically

To: Lane Hall-Witt who wrote (1614)	12/12/1999 1:41:00 PM
From: Colin Thorpe	Read Replies (1) \| Respond to of 2802

Hi, new to this board and usually a lurker as most SI Posters are pretty smart and savy in their discussions: Anyway, your current exchange Re PVSW, caught my eye and I was looking into a possible position. You and Susan discussed the big slide but really did not discuss the issue of earnings that caused the stock to drop. The attached notice of lawsuit seems to focus on that issue as the cause of action. If the officers of the corporation are forcasting poor results are you playing the stock strictly as a momo on a hot sector? Before I jump in, just wanted to be sure I understood the premise for the upward stock appreciation? Hope I am not out of line to inquire? Thanks CT Here is the excerpt I took off the wire service. : B: Stull, Stull & Brody Announces Class Action Against Pervasive Software Inc. NEW YORK, Dec 6, 1999 (BUSINESS WIRE) -- The following was released today by Stull, Stull & Brody: ...The lawsuit charges Pervasive and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that after its initial public offering in September 1997, Pervasive stock traded in the range of $9-$15 range as Pervasive's revenue and earnings showed little growth in the first two quarters it reported as an independent company. By October, 1998, the Company's stock price was trading at just $8.50 per share. The Company then began to move its focus more to the Internet-related tools and saw its stock price increase to above $18 per share. On July 15, 1999, Pervasive reported strong revenues and earnings and strong networking revenues. In a conference call after the release, Pervasive management discussed its new product ("Tango"), its new focus on Internet-related products and touted the Company's prospects. As a result of defendants' statements, Pervasive's stock price was inflated during the Class Period. Top officers of Pervasive took advantage of these inflated share prices, selling 492,250 shares for proceeds of $11 million over the next two weeks following these statements. By October 1999, Pervasive's stock was trading as high as 438 per share. However, Pervasive's business and prospects were not nearly as favorable as defendants had represented. On October 21, 1999, Pervasive issued a press release announcing its 1stQ F2000 results. Later that day, Pervasive held a conference call and admitted that its results for the 2ndQ F2000, ended December 31, 1999, would be much worse than earlier represented and that costs of the development of Tango-related sales would cause losses in F2000 instead of forecasted profits of $.50. On these shocking disclosures, Pervasive's stock price declined $24 1/16 to $12 per share on enormous volume of 11.8 million shares, a 67% decline in one day./......