Why is everyone so quiet about the recent lawsuits filed against EAII?
What lawsuits? Didn't hear about them.
The good folks at the Silicon Investor board dismiss the suit as meritless and the law firm as not very credible. Nevertheless, the stock isn't moving very much and isn't showing strength.
I think that it is important to note the company's response to these class action law suits as begin without merit. Also, if you are more interested in these types of law suits, and Milberg Weiss Lerach (the firm filing), please access the following links :http://www.upside.com/texis/mvm/story?id=34712c157bhttp://securities.stanford.edu/There has been a lot of discussion on the Yahoo! message board with respect to these. As usual, there are a lot of bashers on the Yahoo! board as well. Be careful what you believe. Make sure you check out the character of the poster prior to making any decisions, and be sure to perform your own DD.The stock is flat for now, but I believe that the SAP strategic partnership just recently formed will result in some major business in the near term.With respect to the Class Actions filed. IMHO, they are without Merit, and are filed with the intent to get EAI and its respective insurance provider to settle the matter out of court, rather than defend in a costly trial. That is probably what will occur, with the EAI's insurance provider picking up the tab.These Class Actions are attempting to attract investors to their side at this time. They need to assemble a class of investors that are "similarly situated" with respect to a loss in the stock. The fact that EAI volutarily restated due to new guidelines put out by the SEC is why these Class Actions have been filed, and why these actions are without merit. That and the volatility of the stock price as created by a large short position that has been flooding the market with shares of EAI. EAI's management has no control over new guidelines established by the SEC, or the actions of the short position.EAI is a strong company, with strong fundamentals, and a strong mangement team. Nothing has changed with respect to these factors, and they will only improve over the course of 1999.Hold Long and you and I will do well. I personally will not be getting in with these class actions simply based on the fact that I believe that the company has done nothing to mislead their investors or myself.If you wish to hear more, I post on the Yahoo! message board. If you would like, I have an extensive post with respect to some DD that I have done on EAI. I could post it here if you would like.Tisdal :-)
Tisdl,I would be interested in your take on time frames. Like you, I believe that the stock has great upside potential, but the enterprise market is currently depressed. Cf. also the performance of SAP.From a technical perspective, I wonder if EAI is going to be another proprietary data formats solution, or if they follow the open strategy? - Chris
Tisdale:I'm one who would like it if you would re-post the analysis you referenced here. Thanks for offering, & for sharing your insight.So that I'm contributing something with this post, I note that in IBD's 3-31-99 listing of 197 industry groups, COMPUTER GRAPHICS is now 43rd, down from 34 last week (& w/ an underline, as one of the 10 worst yesterday for the day traders among us) but up from 59th 3 months ago.Re: the class action lawsuits (since that's the thread), I know nothing.
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