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Technology Stocks : Manugistics, Inc. (MANU) -- Ignore unavailable to you. Want to Upgrade?

To: bob zagorin who wrote (1177)	1/19/1999 9:03:00 PM
From: Adam Nash	Read Replies (1) \| Respond to of 1670

My theory is that the offers that companies made after getting a closer look at MANU were below the inflated share price. The share price was inflated because of the takeover rumors, ironically. Management decided to build value first before selling. Of course, if they succeed, then they may not ever sell. IBM announced a deal today to bundle Oracle enterprise applications. They also announced an initiative backing SCM in general, with i2 and Manu listed. The way to tell if any of the companies looking at Manu are serious is to look for partnerships and alliances in the coming months. If they are not there, then suitors were just looking for the kill, not for value. The big ? now is can MANU sales recover from this slow motion PR disaster. My bet is yes, but not quickly. I expect the next 9-12 months to be hard ones for MANU, but of course I am biased. I lived/worked through the AAPL turnaround ;-)

To: bob zagorin who wrote (1177)	1/20/1999 6:41:00 AM
From: Mark Peterson CPA	Respond to of 1670

Consider selling the Feb 12.5 calls against your long stock position. They traded yesterday at over 100 volatility. Repeat with the next strike after February expiration. IMHO, MANU has its work cut out for them, but they are doing the right thing by closing unprofitable offices, shrinking the workforce, and making management changes.I don't see MANU's chief shareholder willing to let the company go at fire sale prices when just by taking the prudent steps they have announced, he can double the value of his holdings in a year just by bringing the company back to profitability. Suitors are generally not willing to pay up for a business that has its own set of internal problems. Hence, the failed acquisition discussions. However, once the problems are resolved, they are generally willing to pay higher prices for well-managed companies. A well-managed, profitable company takes a bundle of risk out of the equation for any acquisition, even at a higher acquisition price.