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Gold/Mining/Energy : GEAC.....Canadian best kept secret -- Ignore unavailable to you. Want to Upgrade?

To: micromike who wrote (970)	1/22/2000 1:34:00 PM
From: PlayTheKing	Read Replies (2) \| Respond to of 1571

Mike, I share in your frustration with this company. They, primarily Sadler and Nelson, were not as forward as the new management team. It may not appear that Bergeron and Lanaway are forthright but I would hazzard to guess that these are difficult times for them. Difficult because there is a lot of work remaining due to this integration of JBA, this would include: 1. The exercise of ensuring that the two camps go forward and work towards a shared vision is quite challenging. It will take several quarters for the existing JBA employees to adapt to the culture of Geac. Along the way, I expect many of the former JBA employees to resist this "cultural change" and we may see key decision makers leaving, including Geac employees. 2. Geac needs to analyze how JBA accounted for revenues, expenses, collections, bonuses and employee benefits, etc. I have a feeling that JBA's management style was more lax compared to the tight controls enforced by Geac. That is why Geac is profitable and JBA was not. 3. Reserves are likely on the high side as they would not want to surprise the market with a warning that there additional amounts to accrue for. The analysts' concerns in the last conference call were primarily focussed on what affect these write-offs would have on cash flows. That is why there was a constant barrage of questions around the collection of Accounts Receivable and what Geac had buried in Accounts Payable. 4. The recent sell off of shares are, I hope, investors that have grown quite impatient with Geac and are no longer willing to ride it out. I don't think that the last 2 years are truly indicative of the potential of Geac because of the transitioning out of Sadler and Nelson. I agree, though, that the former management team should have been more honest with investors around the departure of Sadler. For the company to not say a word about Sadler leaving and hope that no one reads the information circular is quite deceiving, IMO. It was only when the papers reported that Sadler's name was not in the IC that I became aware of Sadler's departure. I now scrutinze every IC that I receive. 5. I look at the sell-off over the last 2 weeks as a "shake-out". A number of block trades were reported and I suspect it is Geac buying back their shares. They have 1.5 years? remaining to buy back the announced 3 M shares back in 1998. My final analysis in this stock is that I am still holding long-term because I honestly don't believe that analyst's and investors have given Bergeron enough time to show what he can do. To expect him to whip this company into shape in less than one year is too much to ask...Bergeron is not God!! However, what I like about him is that he has publically stated that GAC will be a $2 B company...we are already half way there. The man keeps his promises!! Too many bad memories about Sadler and Nelson still linger and it's unfortunate that the many are selling at these prices. It takes time to build a great company and I believe that Bergeron possesses the skills set necessary to take this company to new heights!! PlayTheKing