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  • tex7779 tex7779 May 16, 2003 10:25 PM Flag

    Message to Warren


    Let us assume for now you bought CLRS at 100 in the spring of 2000. Surely, you must have seen that the company had no operating earnings, just a beautiful story, although that was the case for many of the's.

    I had followed the company since about early 2000, but from prior bad lessons learned, did not jump in until October 2000 once the stock price got to below cash value. And I continued buying down essentially always at 50% to cash value until May of 2001. I had met with SJ and others trying to encourage them to turn this puppy around. Then, as the 2nd half of 2001 progressed, it became clearer and clearer to me, that this thing was not going to get better, but instead that one day all of the cash will be gone, while management paid themselves big salaries and bonuses. And the shareholder would be left with nothing. Insiders had essentially stopped buying the stock out of their own pocket since Q2 of 2000. It was not a pretty picture, in fact it was horrible. Granted, the b2b and erp software business got worse and worse, which did not help us the CLRS shareholders.

    Many of us who have been in this stock a long time, were pondering on this board, that it sure would be nice if someone were to come along with some serious cash, take a 5 % position and close up shop. All we were seing was cash burn and more cash burn with no end in sight.

    Then in March 2002, along comes Kanders et al, they buy a lot of the shares, launch a proxy battle etc. And since then the stock has kept on going up and up on balance. Given that the b2b companies that CLRS competed with like CMRC and ARBA have virtually tanked as well, I am firmly convinced that if Warren Kanders had not done what he and his team have done, we would all be looking at a stock value of $ 1.50 or less. My guess is based on the strong pattern of the stock trading most of 2001 at 50 % of cash value.

    From this point forward I see only better days ahead.

    Therefore, if you are blaming Warren Kanders for causing you to buy this stock at 100 and it is now 5.83, then there is very little anyone can do explain the issue of time to you.