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

To: csm who wrote (561)	7/23/1998 7:18:00 AM
From: PaperChase	Read Replies (2) \| Respond to of 586

I think the problems here are obvious. First, CPCI lost 24 cents/share this quarter after backing out the tax benefit but including interest income. CPCI lost 35 cents/share on operations. Second, the CFO being gone is part of the "blame game". It is not necessarily the CFO's responsibility (in a company the size of CPCI) to find and execute acquisitions, that is the job of the President and Board of Directors. There are only some many choices a CFO has to structure an acquisition and these structures are fairly common accounting knowledge at the CFO level. Third, when the CFO leaves it is often a sign of other yet undisclosed problems. If one hasn't purchased this stock, then I would avoid it until one quarter after a new CFO is appointed. Fourth, CPCI's press release was basically worthless in providing any meaningful answers or solutions to the problems they face. Reread the press release and tell me what is there strategy for fixing the situation? If the answers were given in the conference call and not the press release, then what does that tell you about this company? FWIW, the above notes on fundamentals don't necessarily drive the stock price over the short term in a manic market. There may be a relief rally in CPCI that will seem to disavow what I am saying here but these issues will remain for some time.