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Technology Stocks : LEGATO SYSTEMS LGTO -- Ignore unavailable to you. Want to Upgrade?

To: Edwarda who wrote (672)	1/22/2000 4:07:00 PM
From: gmccon	Respond to of 1138

I hope this investment works for you, Edwarda. I just don't think it will. Looks like dead money for at least a year or so. You can only poor so much honey on stink. Clearly, the street doesn't agree with your view. I also think they're going to lose far more market share to VRTS and company, than you think. I've said it before, but it's just to much like STK trying to keep up with EMC. "The rice is cooked". Good luck, Greg

To: Edwarda who wrote (672)	1/22/2000 4:35:00 PM
From: Elmer Flugum	Read Replies (1) \| Respond to of 1138

individualinvestor.com "Legato Systems (NASDAQ: LGTO - Quotes, News, Boards) stated on January 19 per share earnings of $0.03 per share, badly missing the consensus estimates of $0.19 per share. The stock plummeted some 45% to $29 that day. Ouch! The company cited slowing sales, merger-related costs and increased competition. But the real whammy came from the company?s accountants who forced Legato into deferring the recognition of some $18 million in revenue into year 2000. The company also restated its third quarter 1999 earnings downward from $0.18 per share to $0.14 per share. Before the day was through, eight equity research firms downgraded Legato into a non-buying rating range and the Boston law firm DeValerio & Pease LLP filed a shareholder 'class action' suit against the company. We don?t think the suit has much merit in that the Legato statements were not materially false and misleading. Essentially, it accounted for the revenue not yet received. Accounting issues aside, it still looks like Legato is being eaten up by the competition. Even if one includes the now deferred revenue, the company would have still fallen short of the $80 million to $90 million revenue forecasts. Steer clear of this one. The momentum has disappeared."