Gee, looks to me as if they are printing more certificates(probably Pete's brother's firm), than buying tem back(as promised). Make's you wonder, when is the stock price low enough to look like a REAL bargain to Pete and crew? From Balance sheets, look @ the Number of outstanding shares increase yr-over-yr: Balance Sheet 12mos(2) 2004 2003 2002 2001 2000 1999 Current Assets, $M: 1056.9 1143.0 1050.4 1062.8 1003.7 987.9 1072.1 Current Liabilities, $M: 465.5 493.1 469.2 556.1 568.8 596.1 521.5 Long Term Debt, $M: .0 .0 .0 .0 140.0 450.0 .0 Shares Outstanding, K: 387155 385344 382367 375820 369816 361621 367926 Common Equity, $M: 1434.6 1413.6 1331.7 1189.9 1377.4 1203.9 1079.5
I agree with the settlement thought except for the following. The settlement itself will be closer to $1.5 billion. IBM won't pay this and get nothing for it. They will pay an additional $1-2 billion for file-aid, abend-aid, and the big surprise will be to get the gorilla off of Compuware's back. That's right, OptimalJ will go with the deal. MDA is just getting started and the incompetence at Compuware can't market this tool. Put IBM's name on it and you'll have a successful product. The total deal will be between $3-4 billion. The big question is, will this prop up the stock price short term so all of the misinformed stock holders can get out. One thing for sure, no matter what the settlement, it is a guarantee that Compuware will squander any settlement money. If the stock goes up to double digits, get out!
Interesting settlement scenario. We'll see. It would be very beneficial short-term to CPWR. Up front cash to grow the distributed side of the products' business. But I don't know. Sounds a little "rose-colored glasses" to me. Of course not being one of the sharpest pencils in the drawer, I could be wrong!