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Technology Stocks : Commerce One Inc - (CMRC) -- Ignore unavailable to you. Want to Upgrade?

To: johnlea who wrote (1245)	6/20/2000 4:41:00 PM
From: bob zagorin	Read Replies (1) \| Respond to of 1938

john, good to see you again. i bought CMRC today after the drop. my bid went in when the ask was 42 but there was a huge rush of volume right at the end and i got filled at 43. i like the merger and, while i agree the new shares are somewhat dilutive and justify the drop today, i don't think the sellers factored the revenue, professional employees and value that Apnet will bring. my guess is the stock will recover quickly once the analysts get a look at the numbers.

To: johnlea who wrote (1245)	6/20/2000 6:47:00 PM
From: Andrew Danielson	Read Replies (3) \| Respond to of 1938

cmrc will be increasing the number of shares outstanding by 18% for the purchase of apnt. today's price drop of 16.5% puts the 'street' with a neutral reaction to the deal. . . at least at this time. Huh? I have seen lots of people lately get confused about the impact of an acquisition on the current shareholder base of the acquiring company (in this case, CMRC). The increase in the # of shares due to the purchase is only relevant IN CONJUNCTION with accounting for the increase in revenue that the acquisition will also bring. A 16.5% drop because of an 18% increase in the shareholder base could only be regarded as "neutral" if the acquisition was of something that produced absolutely no revenue. I'll state this before as I have already, this acquisition will be ACCRETIVE for CMRC. Meaning, after this acquisition closes, it will produce higher revenue per share and earnings per share figures. Hence, a 16.5% drop is not a "natural" consequence of the any kind of dilutiveness to this acquisition. The reaction was a combination of nervousness about mergers in general, a knee-jerk reaction to the bungling of the announcement, and a piling-on effect of the increasingly common game of momentum shorting. I just don't get what people have against this merger. Let's see. It's accretive to earnings, accretive to revenue per share figures, it was done at extremely little premium to the market price of APNT which in itself was a reasonable 6.5x forward revenue or 80x forward earnings (less than its growth rate of 100% plus), it moves up CMRC's move to profitability by at least one quarter (as per the CC), and it provides the personnel needed to develop and support these newly-formed mega-exchanges. Yes, clearly, like many have suggested, I will immediately exit CMRC based on this terrible, terrible acquisition. Later, Andrew Danielson