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

To: Edwarda who wrote (3457)	10/29/1998 2:52:00 AM
From: Joanna Tsang	Read Replies (2) \| Respond to of 6021

Edwarda: I wouldn't worry too much about integration either. First of all, there's McAfee Office. Yes, it looks cheesy and it's not that professional looking a product, but it's a product, people already PAID for it (most important)...and...they got on the market first, a very critical strategic move to being a dominant player. I also briefly have seen NetTools. It doesn't look too bad... Now speaking as a QA Engr., I agree with you that integration probably has no been tested thoroughly. Sooner or later, NETA will have to account for their product's quality. But that's their marketing's job...and my experience being othere is that half the stuff that's shipped out there SHOULDN'T be out in the market. Just my $0.02...Nighty-nite!!! Cheers, Joanna

To: Edwarda who wrote (3457)	10/29/1998 12:27:00 PM
From: Chuzzlewit	Respond to of 6021

Edwarda, I think there are two things we need to worry about. Integration is one of them, but that is not nearly as serious an issue (IMO) as cash flow. As you undoubtedly know, there is considerable murkiness in what NETA's earnings really are. And this is not due to shenanigans as some bears have suggested. This is due to the fact that accounting standards allow significant latitude in issues as diverse as depreciation and earnings recognition. But it gets absolutely bizarre when you look at accounting for mergers and acquisitions. That's because there is a significant difference how pooling of interests are handled vs. purchase accounting. And to complicate matters we have the issue of R&D writeoffs. Because of all of the growth through acquisition, it is clearly impossible for me to figure out how well or poorly NETA has done over the past few quarters. I think I am typical of many investors when I say I would like NETA to desist from major acquisitions for at least a year (I know that's asking a lot of Larson). But that will allow us to see where we are financially. FWIW, I use federal taxes paid as an indication of what's going on. TTFN, CTC