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Technology Stocks : Sagent Technology, Inc. (SGNT) -- Ignore unavailable to you. Want to Upgrade?

To: chenys who wrote (158)	5/3/2000 12:55:00 AM
From: Carl R.	Read Replies (3) \| Respond to of 220

I haven't seen any evidence for a lawsuit, nor do I think one would be successful. SGNT didn't break any laws, but did commit some blunders that hurt the stock. To wit: 1. After MSTR, they should have carefully researched revenue recognition policies to make sure no bad surprises could happen. 2. They reassured their analysts that revenue growth was on track. This is much worse than just not pre-warning. 3. They handled the matter clumsily in the conference call. Furthermore, no one resigned, but instead they have resorted to issuing more press releases in an effort to defeat wall street. If they had recognized the revenue, and then later they restated, then there would have been lawsuits. This way there are just some pissed off analysts who dropped the rating, and who could later drop coverage. Carl