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Technology Stocks : PTC -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (3382)	4/9/2000 7:10:00 PM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 3646

JDN, you are a conservative, responsible investor and realize that one doesnt buy a stock on a maybe "I plead guilty as charged, Your Honor!" Seriously, I am a conservative investor by today's standards. I invest in only two types of stocks. The first group is stocks whose revenues/earnings growth rates meet or exceed 15% annualized and still have reasonable PEG ratios. The second group is undervalued or out-of-favor "name" stocks that have a reasonable chance at a turnaround. The 15% growth rate stems from the fact that a company whose revenues/earnings are growing at 15% per year on average, will double those numbers in 5 years. And that's what I'm looking for, a stock that might give me a double in 5 years. The hope is that the long term capital gains will mirror the revenues/earnings growth. It doesn't always work out that way though. the possibility of PMTC being bought out With hindsight, I suppose that's because I have no investment here, and didn't consider all of the possibilities for recovery of any (real or paper) losses. In looking at the possibility of a takeover, PMTC certainly does appear to meet some of the criteria that a suitor might look for. Perhaps the biggest plus for a suitor would be PMTC's built in customer base. That is one big plus. Looking at the reverse side though, the biggest negative would seem to be pricing. I would expect that any buyer would be looking at having to pay a premium in excess of 200% of current price (or roughly $30 to $35 a share) for a friendly takeover. And what exactly would a prospective suitor have to offer to PMTC? Despite their current problems, PMTC is still one of the premiere companies in this country. They have oodles of cash, so it's not like they're on the verge of bankruptcy. And it's really only a matter of time before PMTC resolves its' problems with its' own resources. So that means that PMTC is not likely to sell out cheaply. So that leaves us with the possibility of a hostile takeover. I have no idea if PMTC has any "poison pills" or not. I'm also unaware of any "golden parachutes" that executives may or may not have. I strongly suspect that shareholders would not approve any bid that didn't reflect the full value of PMTC (including future growth), so again we're looking at someone having to pay a pretty penny. Can a takeover occur? Sure it can. Will it happen? I have no idea. Nor do I have a strong "feel" one way or the other. I wish you people luck and a quick recovery. KJC