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

To: HVN who wrote (583)	3/27/1999 1:54:00 PM
From: Rick	Read Replies (1) \| Respond to of 782

My Reaction (Once I got over the uncontrollable laughter it induced): Point by Point: 1. You wrote: << Employees follow him like a cult figurehead >> This I do not doubt, as many dangerous, sleazy criminals are charismatic. This fact does not please a wise investor. Jim Jones was followed like a cult leader (in fact he was a cult leader), and his poor followers ended up in graves. Summed up: Don't drink the kool-aid, you fool ! 2. Your characterization of Jim Simms insider stock sales is false, misleading and betrays your obvious bias. The fact is that Jim Sims sales have basically limited to 1st and 2nd quarter of 1998 and February of 1999. Both periods preceded major falls in the stock due to earnings warnings. Other than these periods over the course of several years Sims has not sold restricted shares. Your statement that Sims always sells in his selling window is a complete joke. 3. Regarding employees "buying like crazy". Even if there was a way to measure it, which I am doubtful, it is not relevant to the wise investors decision making. If Jim Sims and his cronies at the top are selling shares, I don't care how many naive, testosterone induced 25 year olds are buying. The 25 year old males at this company have proven themselves to be investing fools (read posts on Yahoo over the past year), why would I now consider it positive that they are buying ? Regarding the reorganization, it is irrelevant. To succeed, this company needs a motivated sales force selling the labor of a motivated work force. Right now motivation must be at an all time low. 4. Regarding employees feeling that the company is not cutting costs: this is even more absurd than your prior statements, as the company just unexpectedly paid out it's bonuses in now nearly worthless stock options. In prior years the bonuses had been paid in cash. Even though the company has a very strong cash position of over $100 million, it chose to screw it's employees out of well deserved bonuses. To make matters worse, the options paid out were immediately and severely depreciated in the market place. So, perhaps your buddies enjoyed the ice-cream social sponsored by the company, but the real fact is that the payment of the bonus in nearly worthless options , even while cash balances are strong, completely refutes the idea that the company is being generous to employees on costs. Regarding your intention to buy more of this "puppy": I am not sure who the real puppy is ! Cheers. Rick. P.S. I will agree with the idea that much of the downside risk has been removed by the recent fall. However, the stock will only go up if it reverses the current revenue and earnings deceleration / downtrend or is taken over at a premium. I think the upside outweighs the downside, but if Sims stays it's a 50/50 bet at best, as the good talent will continue to hit the exits - we'll have to see the turnover figures over the next couple of quarters to get a feel, although I wouldn't expect CATP to be too forthcoming with the honest figures. Last thing - you would do alot better interviewing people that are leaving the company to help you get a balanced picture.