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

To: robert miller who wrote (585)	3/28/1999 3:07:00 PM
From: Rick	Read Replies (1) \| Respond to of 782

robert - 1) the large number of shares Sims owns is testimony to his own lavish stock options package, gained from the company while creating false and dishonest expectations, aided by aggressive and dishonest accounting. Your suggestion that he is only selling a small portion of his position is absurd. Perhaps you can be chief apologist for Mr. Sims irresponsible management of CATP, as these comments are a good start for your candidacy. 2) when Sims sells he is keenly aware of the perceptions and legal implications. like all careful criminals, he walks a fine line such that he always has a cover story to mask his criminal activities. [remember, he has played this game before....to his own advantage and shareholders disadvantage at Concurrent]. The key points to understand about his selling are the following: - it occurred while he was simultaneously hyping the stock to analysts, investors, and existing shareholders. keep in mind he is very clever, so this actually aids his insider trading alibi, as nobody would suspect a responsible executive to behave so stupidly. - it occurred as he was doling out soon-to-be-worthless options to employees instead of the expected mix of options and cash, and previously bonuses had been paid in all cash. - the market could not absorb all of his shares, so even if his actions were innocent (don't buy it for a second!), he does not have complete control over the market for shares. i have no doubt he would have sold his entire ill-gotten stash of shares for $30 if he thought he could get away with it. - his timing in the past has been predictive of problems. this is not luck, this is a very clever man more intent on his and his cronies gains at the expense of his employees and shareholders. The selling by Michael Dell sheds no light on the situation at Cambridge, so I won't comment on it, other than saying "Jim Sims is no Michael Dell". To compare Michael Dell, who has built a company with a solid business foundation to grow for a long time to Jim Sims, a hypester aided by dishonest accounting, who has created a short term success story on a very shaky business foundation is silly. Just as Jim Sims is no Michael Dell, Cambridge is no world class company (though I will acknowledge it has good potential should shareholders and board members be wise enough to install management with integrity overseen by an independent audit committee). Finally, I recall your comments back in 1st quarter '98 as CATP stock was very strong. You suggested that I had an "axe to grind", and made several posts gleefully pointing out all of the wonderful wall street analysts that loved CATP. In light of how things have played out on the business battlefield since then, your prior comments look like they missed the mark. Why should we believe that your current insight is any better ? Frankly, your apologies for Jim Sims irresponsible leadership at CATP are pathetic. Cheers. Rick. P.S. While I still maintain that Sims remaining in charge is the biggest risk factor facing CATP, I do acknowledge that with $100 million in the bank and yearly revenues in excess of $500 million, it is a decent value and even better takeover play. But, as long as Sims remains, the situation is that the good talent with integrity continues to head for the exits.