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Microcap & Penny Stocks : Netrix Corp. (NTRX) -- Ignore unavailable to you. Want to Upgrade?

To: Alan Hume who wrote (117)	1/31/2000 9:31:00 PM
From: Vincent Vega	Read Replies (2) \| Respond to of 162

Nope, I think the sell-off was attributable to the Holley resignation. Looks like most people jumped ship, for fear of the cockroach effect. My personal theory is that a power struggle has existed between Francesco and Holley since the merger. Two big egos forced to compromise will naturally create some problems. IMHO this will be a positive for the company as it will take the focus off the restructuring effort and onto execution. One final thought I have is that a winner like McNulty would not have come to NTRX had he not believed in both the management team and the future of the company. Kaufman Brothers (Vik Grover) came to the defense of the stock today, reiterating their strong buy and addressing the resignation: "Brian Holley, President and CEO of OpenROUTE Networks (acquired by NTRX in December 1999), has resigned to pursue other interests. We believe his departure is a logical event during NTRX?s turnaround, in that it simplifies the company?s management structure and leaves the company?s Chairman and CEO, Steve Francesco, at the helm. In our view, today?s strong sell-off in NTRX shares (off 5 points by noon) is totally unwarranted, since Holley remains a significant shareholder of the combined companies and intends to help the organization during this transition period. Note that during his tenure, despite his significant industry expertise, Mr. Holley was unable to extract the significant value from OpenROUTE's technology, customer base, and strategic direction. In our view, by turning OpenROUTE over to NTRX in a stock-swap transaction late last year, Mr. Holley took the ultimate step in his role as CEO in terms of enhancing OpenROUTE shareholder value through a combination with another company." Regards, VV