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Technology Stocks : RATIONAL SOFTWARE- BUY OR HOLD

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To: Thomas Haegin who wrote (2938)7/6/1999 12:21:00 AM
From: Will Hou  Read Replies (2) of 3115
 
Hi thread,

I am new to this issue and do not have a position as of today. Anybody out there know why the company dropped sharply from $40 (Jan 97) to below $10 by Nov 97? Bad earnings? Bad management? Switching strategy/products? Right now, it's on its way coming back up at a solid pace. Sometime ago (this April after earning release), CS mentioned the target price of $38. I assume that's one year target. Does that mean this issue is approaching full valuation now? Judging by the PE and growth rate, it doesn't look like though. Technically, it also has room to grow, provided it can break that old time high.

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