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

To: HVN who wrote (612)	4/2/1999 1:29:00 PM
From: still learning	Read Replies (3) \| Respond to of 782

Fact of the matter is, though I respect Rick's opinion and his accuracy in calling this one, he set up a straw man based on A. Sims is a crook, B. Key people are or will be leaving. (starting about 6-8 months back) C. This house of cards is built on acquisitions and can't continue its growth. If he's wrong about the stock and they still deliver the #s, then Rick would say Sims is still a crook, Key people will still eventually leave, and they just got lucky in delivering the #s. CTP should be doing well -- it's primary biz is in ERP and CRM, two hot markets. The fact they're not is very troubling. Is it because of execution within CTP, it it because ERP is slowing? These are much more central issues than what I think of Sims. What he did at Concurrent has no bearing on CTP. Fact is (as someone else posted) he took them from $0 to $600 mm, so it wasn't all a house of cards. FWIW I said they'd get back to $15. There had been a rumour or a buyout when they were at $28 but that deal fell thru, I heard. I don't think they get any further than the high teens in the next 3-5 months.

To: HVN who wrote (612)	4/6/1999 3:36:00 AM
From: Rick	Respond to of 782

HVN - A couple of thoughts related to your points: - investing requires an assessment of current performance and a forward looking approach. I can't make money today on the fact that Sims was a successful entrepreneur in Cambridge's startup phase. It's wonderful, it's true, but it doesn't give me confidence that he is capable of managing a global $500+ million global consulting practice, and there are many things that give me doubts. - CATP grew rapidly due to 1) aggressive marketing, 2) hot product: system development labor, 3) aggressive acquisitions aided by a growing stock price, 4) aggressive recruiting aided by a growing stock price. The element that is missing, and is most in need now is a solid stable management approach that values stability and consistency, not only in service to clients, but in service to it's employees and shareholders. Honesty and forthrightness in communication are also desirable. Conservative accounting overseen by an independent audit committee also. - many people were complaining about Sims after his performance at Concurrent. according to my sources he was sent packing by the board and shareholders. - the reorganization is a distraction. while it might be a good move, CATP would not have produced significantly different results had the reorg not happened. it merely provides a convenient excuse for the failures that Sims and Toscanini laid the foundations for in setting dishonest expectations and aggressive accounting. if you believe that the reorg was responsible for the missed numbers, then you are beyond counseling. Let me know if you want me to put in a call to Kevorkian Lynch, a services firm for terminally naive investors. - only the people at CATP really know whether on a net basis talent is departing. it's difficult to see how they wouldn't be losing talent, so I am skeptical of your statement "so far, no signs of it". Are you sure you are looking for signs, or is your head in the sand ? you also stated it's "business as usual" - WOW ! that's really phenomonal, one would think that when a stock falls from 60 to 13 in a high tech company where key employees are compensated and motivated by options and stock purchase plans that there might be some impact. Are you sure you understand the situation, or is your head in the sand ? JBD. P.S. This was more than a hiccup.