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Technology Stocks : Citation Computer (CITA) -- Ignore unavailable to you. Want to Upgrade?

To: Stuolson who wrote (800)	1/26/1998 7:32:00 PM
From: marion salerni	Respond to of 1256

I agree. With such a small float, they would drive the price up, thereby making an offer later on more expensive. With the stock price depressed as it is, the acquiror, if serious, can use the current market price as a reason to offer a lower price. If the stock ran up to $12, it would be harder for them to make an offer at 11 and have the shareholders accept it. Also, if they accumulate a certain % of the stock (15%, I beleive), they would have to disclose it and identify who they are and what they're doing. And they don't want to do that. Besides, if it's HBOC, SMS, CERN, they can pay 13 out of petty cash. And it would still be accretive to earnings for them. (based on 1998 est.). Steve is a naive investor, that's clear!!!

To: Stuolson who wrote (800)	1/26/1998 9:14:00 PM
From: steve winograd	Read Replies (2) \| Respond to of 1256

<<Steve it is NOT common practice for potential acquirers to buy more than a token amount on the open market. That is usually only done, where the buying party is more interested in marking quick money on selling their stake to another party. Furthermore, you are assuming that somebody could buy a substantial stake in CITA at near current prices, which is probably a doubtful assumption considering the volume today.y>> Not only am I losing faith in you're stock picking analysis, I'm afraid you're also going to lose your bet. Volume today was only 1500 shares. If indeed some company was interested in purchasing CITA and was willing to pay 13-14 dollars a share, it is highly unlikely the stock would drop on this low volume. Someone would be picking up these discounted shares. If the optomists on the board were true believers, they would be picking up shares. My prediction (for what its worth)-$10.