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Technology Stocks : Computer Associates -- Ignore unavailable to you. Want to Upgrade?

To: rupert1 who wrote (2917)	8/12/1998 2:53:00 PM
From: Doughboy	Read Replies (1) \| Respond to of 5232

Thanks for posting the annual meeting statement. Very interesting and upbeat. Wang certainly downplays the recent warning on earnings, asserting that their words were misinterpreted, and that the beating the stock took was not justified. He now says that it is a mere possibility that some high-end customers will not sign up for the mainframe business and therefore this was simply a legally required statement of possible risk. As I recall, the warning itself was far more dire in stating that there would be a definite impact revenue and that earnings would be flat--no ifs ands or buts. I don't know what to believe now. Wang, as one would expect, also defended the stock options saying that it keeps his interests in CA more in alignment with shareholders. He points out that he, Sanjay, and Russ paid taxes out of their own pockets (by borrowing $$) on the options and in effect purchased $125 million in CA stock at $57/share. I think he was implying that they took a huge hit on this borrowed money. "I feel your pain." Well, I must say I do feel a bit better. (As an aside, does anyone else think that the President of the NYSE Richard Grasso shouldn't be sitting on the Board of Directors of companies like CA that are listed on the big board? There must be huge conflict of issue problems--especially when he was on the compensation committee that okayed the billion dollar payoff to Wang, Kumar and Arszt.) DougHboy.