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Technology Stocks : BORL: Time to BUY! -- Ignore unavailable to you. Want to Upgrade?

To: Jeroen Pluimers who wrote (8073)	12/17/1997 4:47:00 PM
From: Sam Scrutchins	Respond to of 10836

Jeron and all, Denise returned my call today around 12:30 p.m. Borland is in its quiet period now (before earnings), so she could not provide a lot of information. She told me that Borland has made no announcements other than the news release that BPP posted a bit earlier. She said that she thinks there are three reasons for the selloff: (1) the traditional December selloff, (2) concern over Asia, and (3) concern over the VSGN merger. The first item was mentioned by Ghassen earlier today. Denise said it is true for every year during the past eight years. I see the opportunity for some, but Borland has been going up this year, so I think some percentage of the investors have profits. Thus, I do not see this as a strong reason for the current selloff. It may have contributed a bit, but probably not as much as in recent years. Regarding concern over Asia, she said that Borland has never divulged its market share as a percent of revenue in any area (other than percent domestic versus percent foreign), so she could not give me info on Borland's exposure in Asia. This a a long-time policy of Borland's. Personally, I think it is time for that policy to change, assuming that other businesses freely give that info. As a stockholder, the more I know about a company's business prospects adn future profit potential, the more willing I am to invest long-term. Regarding concern over the VSGN merger, there is not much she or anyone can say about this. Either Del is right or wrong. I personally will vote for it on whatever shares I hold when the time comes, because I have faith in Del (not withstanding the previous merger debacle [in some ways, Borland did benefit from that merger]). Denise could not give me any info on VSGN's recent product/licensing sales, but she did give me a contact at VSGN who can hopefully provide some positive info. Not being a VSGN shareholder, I'm not sure how receptive he will be to my call (later this week), but as Denise pointed out, he and others from VSGN are about to become Borland shareholders. Denise did say that most of VSGN's R&D will be retained by Borland. This, IMHO, is a plus for the long-term. Clearly, Borland will rid itself of unprofitable or duplicative parts of the VSGN operations. (I still think this a short-term depressant on Borland's stock price, however.) I also asked Denise about Del's trip to New York. I told her that some have posited that the trip must not have gone particularly well. Denise responded that her opinion was just the opposite. She could not get Del enough appointments to see everyone who wanted to talk to him (indicating that many investors are interested in where Borland is going) and that she has not heard any negative comments about his meetings. (I'm rushing this now because I have to go to an appointment). Finally, I asked Denise if Del in any sense of the word possible would be going to Apple. She said that I would have to ask Del this question myself. She also said that anyone who has any sense will keep their options open at all times, but she also said that Del wants for Borland to succeed and that he will see that it does. What she was saying, IMHO, was that she thinks Del is staying at Borland. This is all I have. Denise, did I get it right? Sam