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Technology Stocks : Corel - Investors with no Humor -- Ignore unavailable to you. Want to Upgrade?

To: A. Reader who wrote (370)	1/26/1998 11:48:00 AM
From: Stang	Read Replies (1) \| Respond to of 1094

Dragon NaturallySpeakingTM Wins Every Major Product Award at COMDEX dragonsys.com Peter

To: A. Reader who wrote (370)	1/28/1998 8:07:00 PM
From: Stang	Read Replies (1) \| Respond to of 1094

Hey Kurt: Just found out that the DOJ makes their files available for download in WordPerfect format. To bad its not version WP8. Check it out! usdoj.gov Peter

To: A. Reader who wrote (370)	1/29/1998 7:22:00 AM
From: A. Reader	Read Replies (2) \| Respond to of 1094

January 29, 1998 RUMOR FUELS COREL STOCK By SIMON TUCK -- Ottawa Sun ÿ Corel Corp. stock bolted into high gear yesterday as takeover rumors made their way to Bay Street and into the financial press. ÿA business wire article released shortly after noon cited Corel and two Atlanta-based firms as possible takeover prey for Markham, Ont.-based GEAC, Canada's largest software company. One analyst said GEAC, known as a specialist in buying then turning around troubled firms, is "obviously in acquisition mode." ÿAs takeover rumors spread, the Corel's stock rose to a high of $3.90 yesterday on the Toronto Stock Exchange before settling for a 76› (25%) increase on the day. The surge, based on 459,750 shares trading hands, lifted the stock to $3.75. The Ottawa-based software firm also enjoyed a steep climb on the Nasdaq index, increasing 50› to $2.53. ÿGEAC stock, which has been climbing in recent weeks, was up 75› to $48.75 yesterday. ÿA GEAC spokesperson did little to quell the rumor mill. "That's interesting, but we can't make any comment on acquisitions until they're completed," said Faye Hou. "We can't say sometime down the road we won't be talking to them." ÿCorel chief financial officer Michael O'Reilly said he first heard about the share hike when a TSE official called for an explanation. O'Reilly said he was assured by CEO Michael Cowpland that no takeover was in the works. ÿ"There's no specific reason for the surge in stock price," Cowpland added, "but it does coincide with our announcing a strategic relationship with Dragon Software." ÿBut this latest takeover rumor involving Corel has obstacles. Among the most significant is that Corel products wouldn't be the best fit for GEAC, even though Cowpland once sat on the larger firm's board of directors. Corel specializes in commodity-based software and GEAC sells enterprise products for such things as finances and human resources. ÿOne analyst, however, said there are some things about Corel that would make it look good to GEAC. "If management is perceived to be a problem and the cost structure is too high ... you could have a profitable (opportunity)." ÿ"Anything can happen," said Valentine Lee, an analyst with Gordon Capital in Toronto. ÿOverall, analysts didn't put much stock in the talk. "It's rumor mongering, that's all it takes (to get a stock going)," said Josef Vejvoda of Loewen, Ondaatje, McCutcheon in Toronto. ÿEven if there is substance to the rumor, Vejvoda said the stock's increased value has probably killed it -- at least for now. ÿThe rumor may not be the only thing pressuring the stock up. It may have also been helped by a feature on Corel in Monday's New York Times. The article described the firm's recent woes, but also included plenty of comments from the ultra-confident Cowpland. ÿ"This is where the next 10 years in software is going to be," he's quoted as saying. ÿIn the three days since the article was published, the stock has jumped $1.27 (51%), welcome news for a firm that has been pelted in recent months with almost nothing but bad news. ÿOn the TSE, Corel stock fell as low as $2.05 in recent weeks from a 52-week high of $9.70. On the Nasdaq exchange in New York, it lost more than two-thirds of its value since September and was trading at slightly more than $1 before the recent hike. Its 52-week high in that market is $7.13. ÿDespite the stock jump, most analysts remain dour about Corel's future. "I don't see what's there anymore," said Vejvoda. "There's definitely some hardship heading for Corel."