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Technology Stocks : Help Desk Software Niche (RMDY, INFR, SWRT)
VNTV 77.60+2.6%Jan 12 4:00 PM EST

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To: Ron Kory who wrote (65)6/24/1997 9:11:00 AM
From: Mike Buckley   of 135
 
Ron,

Thanks for your thoughts about SWRT.

There's no doubt that Clarify is looking more attractive following its recent price drop of about 20%. However, I wouldn't put much stake in the estimated five-year growth of 50%. From FY96 to FY98 the analysts are projecting 35% annual growth. To achieve a five-year rate of 50%, the final three years would have to grow 61% on average. Possible, but not probable.

With a current growth rate of 35%, the current PE of about 29 makes the stock close to fairly valued in my opinion, not cheap.
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