Documentum (DCTM) Software Message Board

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Technology Stocks : Documentum (DCTM) Software

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To: Tokyo VD who wrote (323)	7/21/1998 7:55:00 PM
From: growthvalue	of 600

Tokyo - According to Zacks, '98 consensus estimate is $0.82 and '99 is $1.20. At today's close of $45.25, it's at 55.18 times '98 and 37.71 times '99. Unless this fails to account for a split I am unaware of. I am in the process of doing my homework, actually - I'm looking for opinions about this company's competitive positioning. How secure is it? It looks like it's growing at about a 50% clip and analysts seem to expect this to continue. Clearly the market for their products is only going to go up, but is their product that good or are they that ahead of the curve that they can maintain their selling prices and market share? The multiples tell me that this company is either significantly undervalued or there is risk that their current success may not have staying power. Basically, the question I'm trying to answer is: What is the risk that DCTM's software is going to become a mere commodity in the near future? Plenty of tech stocks enjoy tremendous growth until competition shreds their margins - usually because there is no significant way to differentiate the product competitively.

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