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Technology Stocks : PROGRAMMER'S PARADISE (PROG) -- Ignore unavailable to you. Want to Upgrade?

To: Larry Brubaker who wrote (588)	2/6/1999 11:53:00 AM
From: Razorbak	Read Replies (2) \| Respond to of 2383

Devil's Advocate But, Larry, if that argument was consistently true, then neither Microsoft, Yahoo, nor AOL would have been able to grow as fast as they have, which was partly through acquisitions paid for by rich stock prices. Razor

To: Larry Brubaker who wrote (588)	2/6/1999 4:53:00 PM
From: Carl R.	Read Replies (1) \| Respond to of 2383

Larry, I understand your point. Probably a better example of growth through acquisition using overvalued stock is CSCO. So long as the acquiring company is able to show exceptional growth and successfully integrate acquisitions they will continue to be valued highly. If for example BYND does not show exceptional growth they will fall in value anyway. Making a few strategic acquisitions along the way allows the growth to look more impressive, both top line, and bottom line, and could perpetuate the high valuation. Such a strategy was successful in the case of CSCO, but there are no doubt many other cases that come to mind where the strategy was less successful. A less successful case might be USF. BYND is probably not a great example, because PROG is so much larger than BYND that once they had acquired PROG the resulting company indeed becomes PROG instead of BYND. Suppose instead that AMZN acquired PROG. This would move AMZN beyond books and into software. The additional sales of PROG would make the top line growth of AMZN seem more impressive, yet the stock given up to acquire PROG would be relatively insignificant. In my opinion PROG is too large to be easily swallowed by a tiny internut, but would make excellent sense as an acquisition target for one of the really big 'nuts. Carl