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Technology Stocks : Cybermedia (CYBR)
CYBR 512.28+1.6%Nov 10 3:59 PM EST

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To: Jeff Christensen who wrote (26)3/17/1997 10:11:00 PM
From: Doug Fowler   of 306
 
I do not have a positive take on Cybermedia for several reasons:

1. In my opinion, their products are junk. I bought First Aid last year for something like $33 or $35. The box PROMISED an awful lot. After trying it out for a few hours, I couldn't believe how much of a joke it was. Didn't do ANYTHING useful for me. The one suggestion it made would have required me to go through five or six steps. Threw the stuff in the garbage - wasn't worth the trip back to the store. This stuff sells because of its promises and low price, but I bet there are not a lot of repeats.

2. The stuff isn't being bought up by corporations. I knew two people who worked in Corporate sales for Cybermedia - one left after three months, the other stuck it out for nine months - and didn't sell a SINGLE copy.

3. With $15M in sales last quarter, they didn't make any profit (OK, less than a penny a share). If the company can't make any money when sales are six times higher than the period from a year ago, then WHEN are they going to make money?

So, I would definitely not BUY, unless it came down to the $5 a share level - then it would be a good acquisition target.

Of course, I have been wrong before - but I was very right on Stac and Citrix.

Doug
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