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Technology Stocks : BEA Systems (BEAS) - Undiscovered Growth Stock

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To: JakeStraw who wrote (523)7/28/1998 10:37:00 AM
From: treetopflier   of 2477
 
Great news and no volume...bad combination.

What does that tell you about the market in general. BEAS has released its premier product on time and the product meets very demanding performance specs.

Another analyst firm picks them up with STRONG BUY.

They acquire additional products that fit their strategy.

They line up plenty of capital for additional expansion.

Their pipeline is in good shape and are very close to on track for the quarter (according to Dain).

Earnings estimates of .36 for this year put it at around 50x future earnings.

This means the market ISN'T going to keep driving these PEs up. This is very bad news for BEAS, BMCS, SEBL, PSFT, others with 40+ PEs. Good time to see where the dust settles. A year ago BEAS would have hit 30 on the past week's events. Now we could see 15. NOT GOOD.

Sign me 'in cash for now'.
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