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Strategies & Market Trends : Anyone following Capstead (CMO)?? -- Ignore unavailable to you. Want to Upgrade?

To: Rick Kunz who wrote (98)	8/26/1998 1:03:00 AM
From: James F. Hopkins	Respond to of 216

Rick; Most lawsuits such as this only benefit the lawyers, it's seldom stock holders ever get more than a token sum even when they do win. The thing that blows so many of them out of the water, is management wakes up raises some cash does a stock buy back, and by the time the cases get to court the price is back up close to the level they decided to file at, you can't insist a stock show you a profit, if they dumped below xx and it goes back above there they can get laughed out of court. With these suits IMO CMO has the right to find out who shorted the stock in May and June, any in the class action who did so can find themselves subject to law suite, at best they will have a hard time, each and every person in that class action can also be subject to audit, the burden of proof of their loss can go beyond them just producing a buy and sell receipt, they may have their entire brokerage accounts scrutinized. It's not always as easy as the ambulance chasers would have them think, and lawsuits can bite two ways if they are found to be frivolous or worse yet malicious, & with motives that intended to injure the company or it's image, the side effects could make the medicine turn out to be worse than the malady. Also if any of them bought or shorted any after these suits hit the news in an attempt to exploit the situation while at the same time suing the company they may be in for a real wake up call. Jim