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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: treetopflier who wrote (12053)	10/9/1998 1:27:00 PM
From: Srini Raghavan	Read Replies (1) \| Respond to of 14631

REDB has a great product. Don't even doubt that. If REDB was up for sale before it went public, lots of companies would have paid more than the $36M they generated thru IPO. Stock market was doing very well and lots of companies were cash rich. Most REDB employees would have made lots more money than they ever did or probably will ever do. Upper Management at REDB believed a lot in themselves and put in a poison pill preventing companies from buying them out unless the price was very steep. They went public hoping in the long run they would make more money for the investors. No one does that unless they believe they have a great product. In the past 3 yrs ORCL IFMX SYBS made their own DW's either by acquiring companies or by building themselves and hence don't see as much a need to buy REDB now. The selling price of $35M is pathetic for a company that has a proven product. With $22M in cash and 13 million floating shares IFMX has just paid about $1/shr. Incidentally this was the fair share price of REDB fixed by the board members in the 6 mos before they went public. After 3 years and a much better enhanced version of the product with tools for DW (Engage technologies that REDB bought for $12M) and many more customers if the price hasn't changed (to adjust even for inflation) GO FIGURE ... A nice topic to discuss would be "What was REDB really worth?" We know it was $35M to IFMX at this point in time, BUT ... Also, the seed money for many startup's in the valley these days is in the 10's of millions. -Srini