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Technology Stocks : PROGRAMMER'S PARADISE (PROG) -- Ignore unavailable to you. Want to Upgrade?

To: Larry Brubaker who wrote (2216)	8/4/2000 10:37:56 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 2383

biz.yahoo.com Oops, I guess this answers my previous question.

To: Larry Brubaker who wrote (2216)	8/4/2000 10:41:33 PM
From: Carl R.	Respond to of 2383

The reason I presume is that it makes no sense for them to own the European operation. There are several very, very knowledgeable people on the Yahoo PROG thread, and they have been calling for exactly this for months. Here are my reasons for selling the European operation: 1. Margins are very low in Europe, especially since most of the sales are direct sales. 2. The European operation has produced consistently disappointing results recently while the US operations have been growing and profitable. 3. The European operation creates a global management problem, including hedging currencies, communications expense, shipping expense, and travel. Eliminating it should substantially decrease SGA. 4. They still have an interest in the results since they will own 30% of PC-Ware, but because the European operation will now have strong local management, it will probably perform better. 5. The European operation is a diversion of management attention. I personally think this is a very important move, and will benefit the company greatly. Now the question is what their strategy is at this point. Some alternatives are: a. Sell the domestic operations and liquidate. b. Make an acquisition and try to expand aggressively in the US. c. Aggressively promote their web site and try to grow that way. d. Continue business as usual, only smaller. It will be interesting to watch the continuing developments. One thing though is that they should be profitable from now on. Carl