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Technology Stocks : Remedy Taking a hit why? -- Ignore unavailable to you. Want to Upgrade?

To: Shay Mowlem who wrote (466)	1/28/1998 5:40:00 PM
From: Mo Chips	Respond to of 763

<<I fail to understand how a whole sales force can collapse because of the departure of a few senior sales individuals...>> If these are people at the top (VP, Director, District Mgr) then these are usually the people who know the products the best, are often the most seasoned (especially when it relates to a complicated enterprise product), and are the best leaders and motivators. I think this type of disruption is VERY common in small software comapanies that lose top people. The top sales folks carry a lot of weight of the company and bring in a dispropotionate piece of the revenue pie. They basically have the largest quotas and bring up the average revenue per sales person. They leave and the remaining sales force is less efficient. I would venture to guess that the top 10% of sales people at remedy account for 1/2 or more of the revenue, especially considering that they've ramped up the sales team lately and the new folks are not going to be as good. Mo

To: Shay Mowlem who wrote (466)	1/31/1998 11:39:00 PM
From: Mo Chips	Read Replies (1) \| Respond to of 763

Here is a link to a review on RMDY fool.com I particularly agree with the following... "Because the company didn't bother to mention the cautious outlook for FY98 in its Q4 earnings press release and failed to issue a follow-up release after apparently making such comments on the conference call, my first reaction is to suggest you avoid this stock. If management doesn't want to deal squarely with the broad investment community as recommended by the National Investor Relations Institute (NIRI), then you probably don't want to have these guys in control of your money." I tried to get info from Remedy IR and was COMPLETELY unsuccessful. This company does not care if the investor gets burned. Look in to it, numerous insiders cashed out when the price was >$40. And guess what else, they mentioned in the Conf Call that employee option repricing was probably going to happen. So they will give employees cheap options, let the stock run up without ever issuing ANY cautious guidance, let the insiders sell out, then release poor earnings only to leave the small investor holding the bag. I would also suggest looking at the history of small specialty software cos that reach a point in their life that they have great difficulty in growing sales beyond a certain level. I would say, if you want to 'trade' this stock you could definitely make some money. But if you want to 'invest' in this company, I'd find one that cares a little more about the investor. Remedy's millionairs could care less... Mo