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Non-Tech : LIST OF COs. THAT MAY HAVE ABUSED ACQUIRED R&D WRITEOFFS -- Ignore unavailable to you. Want to Upgrade?

To: Cynic 2005 who wrote (40)	4/11/2000 2:26:00 PM
From: Paul Berliner	Respond to of 41

I don't see any major problems usually associated with other software companies, such as an aggressive acquisition strategy. CMVT may be under pressure today because it is expensive and someone may be lightening up. However, in a recent (mid-march) conversation with analysts, the company directed wall street to substantially raise its revenue estimates for the next two years. Everyone seems to be saying that the company's growth is accelerating. On top of that, they are winning business from increasingly large phone companies. Should they get burnt on the tax-treatment of the Israeli subsidiaries, the stock may get a 25% markdown on panic selling but I don't think that it will be a long term psychological catastrophe to its shareholders. First, wall street will not punish it for tax fraud as it would punish a company that was playing with revenue numbers. Second, the company is in the S&P 500 which should give it a cushion in the event of a blow-up. Third, the recent stock split should (in theory) be providing increased liquidity which is supposed to decrease a stock's volatility. Whether or not there's any truth to that theory is another story! The stock has sold off sharply form its steep rise, but it should hold here at the LT moving avg, barring any unfavorable news: bridge.com