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  • tex7779 tex7779 Oct 19, 2002 12:45 PM Flag



    Selling or dumping as you put it the software business, which is our only business, for peanuts was widely anticipated.

    From the "" article on 9-11-02 ( strange timing ) we saw that DeutscheBank's David Garrity predicted a sale of between $ 5 and 10 million. Though not being a "professional" stock analyst myself, I could not see at this time of our stock market sentiment how we could get that much. Hence, in my 9-30-02 post my best guess was between $ 1 and 2 million, which was still a bit too generous.

    Regardless, I am glad to see this coming to an end. We have all seen since the Q3-2000 earnings call ( another disaster ), that the stock with very few exceptions, always traded at below cash levels. Why ??? Clearly, other than an overwhelming management and staff structure, software sales and services seemed to carry a significant LIABILITY in terms of tech support etc. Even recently, with just 47 or so employees we were still trading about $ 2 / share below cash. Seems to me, the market was saying now as in the past that CLRS being in the software business was a huge liability, recently up to $ 32 million for the $ 2 / share times our 16 million shares.

    Therefore, if we can remove a $ 32 million liability by someone paying us $ 1 million, then I am all for that. What is truly amazing is that in March of 2000 during the secondary offering, the market though cracy at the time, paid $ 115 / share which now the same market has valued at minus $ 2 / share or worse. So getting out at a " peanut " level, though still positive, is pretty good in my book.

    I agree with you as being curious about future cash burns if any. I would tend to think, that we should soon see what will be left. The way I see it, there should be only two or three employees at most. JM to keep track of the money and one or two others with other incidentals. The question will be how " OUR " $ 100 million will be invested and how much in interest or dividends we will be getting.


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    • You have predicted double digit prices
      for the stock.
      You have predicted the share value of 11
      or better.
      You have never once been correct in any of
      your predictions.

      What 32 million liablility ?
      The major expence has been the overhead
      of crappy management.

      The service group was turning a profit.
      The original company was profitable.
      Not much but at least SOME.

      I do not see this sale as a good thing,
      perhaps the only avenue they left after
      ruining any chance Clarus had.
      What makes anyone think these people
      can run any business ?

      1. The deal has not been finalized.
      2. The law Suit is not finished.

      The saga of the Clarus losses
      is not over. Lets see how much of that
      100 M is left when they get their
      bonuses for selling this pig
      and Where they then invest the money.

      SOFN is being milked, and their value
      has not gone up.

      • 1 Reply to cynicalfool2
      • Cynical:

        I must say you are true to your handle. Your last few posts to Dr99 seemed to display some intelligence, then you pull this one. Regardless of the any facts pointed out, you go into a spin mode.

        First, any discussions or points I have made in the past were not predictions. Earlier discussions on my part regarding a total absorption of ALL of Clarus into another company were a few quarters ago when we had more cash in the bank and most importantly the equities market was in much better shape. You may not have noticed but there has been a significant drop in stock prices for many companies over the last 4 to 5 months. But then again, you are that cynical fellow and such facts do not matter to you.

        Just in case you have not noticed, Clarus will be still a company even after the software business and relevant employees have been picked up by Epicor. As I posted before, Clarus will be a company with very very few employees, THEY ARE NOT NEEDED. Therefore, your concern about these people being able to run a business is irrevelant. The only business Clarus will have left is managing the cash, and that can and will most likely be done by the CFO and the BOD, that is it.

        Being that you are cynical, if you believe that the BOD cannot manage the money, than you will have, if you are a share holder, an opportunity to vote against this pending business dissolution. If you are not a shareholder, why are you interested in what is good for the business or not. If you think that this will tank, may I suggest that you short this stock. You will have plenty company. Time will tell.

        As to the $ 32 million liability, I suggest you read my post again. I did not list it as a true liability in its accounting sense, but more as a value that the market has given the stock. How else can you explain the big difference between the cash value and the market value. For whatever reason, the market was saying for a long time, that Clarus with its organization being in the software business created a negative valuation. Whether you or anyone else disagreed with it is irrevelant. Whatever term you wish to give to this issue, and I called it a liability, at the end of the day the market continued to look at whatever Clarus was doing as being negative baggage in an amount of money that is the difference between the cash value of the business ( $ 100 million + ) versus the market capitalization, which is about $ 75 million now.

        Your vitriolic comments regarding Clarus managmenent and its BOD lead me to believe that you are an ex-employee with an ax to grind, or that SJ and his merry men really burned you somehow. If so, I sure hope you get some help.