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Technology Stocks : CATP-The stock is taking off -- Ignore unavailable to you. Want to Upgrade?

To: Rick who wrote (545)	3/21/1999 11:11:00 AM
From: HVN	Read Replies (2) \| Respond to of 782

Thanks for the posts! You could have made your points in less than 1 email, but I guess you have to 'vent' as well! :) I won't disagree with you on your points - except for a coupla things. First, with Y2K hiring pressure being relieved next year, IT departments will start concentrating on the investments they have currently put on hold. The problem is that the Y2K people may not necessarily have the skill sets that next year's projects require, and that might actually push wages up even further (someone react please!). Corporations (and the govt.) have budgets to work off of. And they have plenty of places to spend them in, and next year, and the year after that will be no different. The year after that - I'll leave that analysis to the expert. Second, Mr. Sims built the company into what it is today. He may be slimey, but he DOES know the business and the company. The restructuring makes sense, and as with my company (which is a LOT bigger than CTP and started its restructuring some time ago), it's not easy to make this transition. CTP's management just made a bad call about how it would affect the organization. In this new world, maybe Mr. Sims is not the right person to lead the company - and I can agree with you there. But for now, he's at the helm. The company is strong when it comes to its people, its project managers....and they need to do something quickly to push the stock price up to hold on to their employees. I wouldn't be surprised if that $100 million in cash is used to quickly buy back stock. Frankly, I cannot think of a better use to put it to at this stage. Where I DO see a concern is that the top line business revenues didn't grow as anticipated. the fact is that in the IT world today, the bigger firms are grabbing a greater share of the IT $s, and with CTP being one of the larger ones, one would expect them to be on this trend. I guess they're not - and that is what bothers me. At 11 3/8, they are decent buy - there's not much downside risk - just $11 3/8! :) there's a higher probability they'll go up from here rather than down. we could analyze this up the wazoo, but sadly, today's market doesn't go for that any more. I guess the analysis serves for the long run. And I've bought into this company at 11 3/8 for that very purpose.