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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Bananas who wrote (3075)	8/14/1998 10:30:00 AM
From: Chris Anderson	Respond to of 6021

I think another reason short interest may have been up on NETA was due to speculation it may be the next software company to take a nose dive. Take a look at the charts for PMTC, CA, CATP and PSFT in the past month or so. NETA has held up fairly well and, hopefully, will continue to do so. Chris

To: Jim Bananas who wrote (3075)	8/14/1998 11:43:00 AM
From: Geoff Nunn	Read Replies (1) \| Respond to of 6021

Jim, Thanks for calling attention to Symantec's adoption of a "shareholder rights plan" -- otherwise known as a poison pill. Academic studies have concluded that when a firm adopts the pill, the price of its stock usually drops. This is not surprising given that the pill, as you suggested, is an anti-takeover device. Pills use language making it sound like they are on the side of the angels, yet the principal effect is to entrench existing managers in their job. If these managers are incompetent, adoption of the pill is bad news for shareholders. The pill effectively limits the quality of management we are likely to see at Symantec in the future. This can only be good news for NETA shareholders. Geoff