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Technology Stocks : INPR - Inprise to Borland (BORL) -- Ignore unavailable to you. Want to Upgrade?

To: Cube who wrote (791)	8/2/1998 4:02:00 AM
From: TTOSBT	Read Replies (1) \| Respond to of 5102

Re: "QDEK price was at 8 dollars per share when their similar financing deal happened. Sound familiar?? QDEK is now at 1/2!!" Thanks for your comments and concerns of which I cannot argue with. Do you have any idea of what QDEK's cash at that time was? Also Larry Whactel (respected daily market timer) made some comment about this market is starting to resemble June 1996 and 1987 and he says a 10% correction is likely from the highs so you may be falling in line on Monday. One thing I will say if INPR falls to 1/2 it will not just be due to stock dilution the earnings will have to confirm something like that! Which brings to mind do you have any information on what QDEK's resulting earnings was following that dilution? IMO shorts would not want to sell into a positive earnings projection, hence the low or below average of INPR volume. I borrowed this from the INTEL thread: hread, MARKET CORRECTION Prudential's Larry Wachtel thinks the current correction bears all the earmarks of the severe pullbacks occurring in July 1996 and October 1997. If true, he thinks a 10% correction from the recent top (DOW as a yardstock, but NAZ gorillas following suit) would be what we might expect. TTOSBT

To: Cube who wrote (791)	8/3/1998 12:57:00 AM
From: Ghassan I. Ghandour	Read Replies (2) \| Respond to of 5102

All the recent talk about a market correction ignores the fact that small cap tech stocks have been correcting for the last few months and most are down more than 50%. Some are down on earnings warning or disappointment (e.g. VLSI even though the company indicated that business is getting better) and some for no reason at all (e.g. CUBE which had a good earnings and carry some analyst buy recommendation or CREE which had better than expected earnings yet the stock plunged like Andrea which came up with a surprisingly dismal earnings). Regarding the questionable financing deal that Inprise received lately I understand that this is not a new deal but an implementation of a dated deal which was publicised even before the stock had its latest runup to 12. So, the recent decline, I believe, has nothing to do with that deal as the recent dayly volume supports. The comparison with QDEK is not valid at all IMHO. The following reasons are why I think so: 1. QDEK's earnings before and after the deal were negative and the balance sheet was showing a dwindeling cash position. Inprise's balance sheet is better than it had ever been since Del took charge of the company. 2. The story of QDEK's upward flight is not unlike many internet stocks which, only recently, were flying high like a hot air balloon. Together with NSCP they were the main internet stocks and Internet telophony had just been invented about which Barron had a good word for QDEK at that time. 3. QDEK tried to implement the Computer Associate model by growing through acquisition and, in so doing, take advantage of the highly inflated stock price. The attempt failed as it was not backed up with deep pockets and strong financials as the case is with CA. Is Del trying to walk the same road? I hope not and I think not. Finally, if I were convinced that I should dump INPR, I would never do that in a plummeting market such as we had on Friday. I would wait for a technical rebound in the stock or at least in the market (unless, of course, I am forced to do so by margin pressure). INPR should not close below 6 unless all indices indicates a record decline together the same day. Even then, such market action may be indicative of the END of the correction because that is what market reversals are often started with. Go INPR Ghassan.