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Technology Stocks : Oak Technology (OAKT) -- Ignore unavailable to you. Want to Upgrade?

To: Bonzo who wrote (3658)	11/25/1997 4:41:00 PM
From: Michael H. Dragon	Respond to of 4335

Joe,I can't understand why Oakt will not do a stock buy back,apparently oakt management sees the stock going lower.I beleive we will probably see the stock go well below 7. If you figure out exactly how much cash they have per share that will probably be the bottom.I don't like their latest acquisition at all,it adds up to another charge against earnings this quarter and even bigger ones down the road when they quote unqoute meet certain milestones.This idea of meeting certain milestones is the kicker to me.Pixel Magic was acquired the same way,we are all well aware of just how much Pixel Magic has added to the bottom line,they haven't made shareholders a penny/share since they were acquired but they met certain milestones and cost shareholders another charge against earnings.Perhaps oakt best approach could be to stop all R&D,reduce the work force to as few people as possible and when all revenue stops disperse whatever they have in cash to shareholders and fold.At the rate we're going we will run out of cash eventually.I don't understand the reasoning of buying a company if it won't help the bottom line and so far the whole Pixel Magic deal has been a bust.With over 3,000,000 shares traded yesterday it is apparent that we the shareholders will be the last to know what is going on. Mike