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Technology Stocks : CPCI - great earning , BARRON's suggest -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Jens Tingleff who wrote (541)	6/3/1998 6:15:00 AM
From: PaperChase	Read Replies (1) \| Respond to of 586

Mr. Jens Tingleff: Let's hope that CPCI management is smart enough to stop any buyback plans. Many "small" companies have been brainwashed in this manic bubble to buy back there stock to show confidence and act like the "big" boys. But small companies like CPCI don't pay dividends and the focus should be on using their cash to rapidly increase top line revenue growth. With tech stocks, more and more cash is always needed for R&D just to remain competitive. Thus it is far more important for this TYPE of company at this STAGE in their life cycle to be using cash and cash flow for R&D and technology/ company acquisitions. They might even consider using a mixture of cash and new share issuance for future acquisitions while their share price is in the toilet. I don't see an overwhelming need right now for CPCI to reduce the number of shares it has outstanding. Share buybacks should, IMHO, only be used by a "big" company that is cash flow positive with the EPS benefiting appreciably from the buyback. Anything else is a waste. With a tech company like CPCI, the street will love them for an "extended period" just for large sequential increases in sales even at a breakeven EPS.