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Technology Stocks : Trimble Navigation -- Ignore unavailable to you. Want to Upgrade?

To: Altaf Amin Jadavji who wrote (2712)	8/21/1998 10:06:00 AM
From: arun gera	Respond to of 3506

Altaf: I would rate TRMB as Hold. The picture right now is too fuzzy to buy TRMB. It is not clear who is in charge or will be in charge. Also, I am not sure if Charlie was as wrong about his management style as it is being made out. He definitely is a stabilizing force. Trying to compare Trimble to Apple (not an Apple to Apple comparison really), the loss of Steve Jobs at Apple practically ceased the strategic technical advances at Apple. John Scully from Pepsi did improve marketing, but surrendered technical leadership to Microsoft. Also, Apple under Scully launched several visionary projects that never went anywhere. Jobs knows the industry better and the kind of innovation needed. And the results are already showing after he returned to Apple. The impression that many investors have is that a new CEO will do what Gerstner did to IBM. I don't think that is the solution for TRMB. IBM is huge and an entrenched monopoly in many of its businesses. There were great inefficiencies in IBM. And IBM employees were too comfortable. Trimble employees are not that well paid. In fact they may be underpaid by Silicon Valley standards. The common Trimble employee will be happiest if Trimble's stock went up, as options are a significant part of the compensation. On the positive side, a new CEO could be more Wall-Street conscious. Has to be an outsider obviously. Also, may not have as much sympathy for non-performers. That can improve overall performance. However, I would recommend a minor tweaking of the organization and not a major overhaul at this point. It is not clear what kind of company TRMB will be without Charles Trimble at the helm. So I am ready to completely re-evaluate my long-term investment in TRMB as soon as some more information becomes available. Arun

To: Altaf Amin Jadavji who wrote (2712)	8/21/1998 5:44:00 PM
From: David	Respond to of 3506

Altaf, I thought your analysis posted elsewhere yesterday would be of interest here, since it explains a couple of actions: "A Trimble soap-opera today (assume Co and its relation to GPS interests you) ... PR this morning announced a sudden resignation of Charles Trimble with interim successor (indicating abruptness of call) and complete withdrawal of C.T from the company. With this, they also announced a 1.1 million share buy-back which countered an earlier disclosure that they would NOT buy-back any shares. Number of shares is noteworthy because: a) the size represents unusually large portion of shares outstanding (1.1/22 mil) and; b) amount roughly equals the number of excersizable options presently held by C.T and hence would calculatingly balance dilution resulting from their execution (indicating reaction to some type of brinkmanship, i.e., "fire me and I'll exersize options and liquidate shares to your detriment"). BTW, head of investor relations takes a vacation (talk about vacating the weather station during a storm). "The soap-opera continues ... In the afternoon another release is issued stating C.T. will remain as Chairman and usher in a new CEO. Buy-back is also revoked. "Meanwhile, stock remains with recent price range and volume is below average (in a market-wide, low volume day) despite, you would think, the dramatic release. Obviously something went down with two likely causal scenarios synthesized from various sources and IMO: 1) board wants to sell the company (maybe with offer on hand) and C.T. is opposed to the point of threatening his withdrawal feeling that he is integral; Board calls his bluff and he capitulates. 2) Board resolves to bring in professional and experienced CEO (C.T., though regarded as great engineer but poor businessman, has an abysmal record in managing the company with analysts and shareholders both recently petitioning for his removal as CEO. Anyhow, C.T. stands opposed (same as #1) and then capitulates."