Cents and Sensibility - Kimberly and Friends' Consortium Message Board

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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium

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To: puborectalis who wrote (30252)	11/19/1999 1:01:00 AM
From: westpacific	Read Replies (1) of 108040

PVSW - wireless play going into next year. Similar to fall off that happened to CNQR. If you have extra cash or looking for a longer term hold with 100% Upside within 6 to 8 mos., this is a great bet. I am holding this in my IRA and accumulating on further weakness. Read this report the day the stock dropped 2/3rds in value. Seq. growth is alright, good revenue and again spending on R&D in the wireless area. Pervasive Software cut by two-thirds New spending initiative to rip hole in balance sheet By Brenon Daly, CBS MarketWatch Last Update: 6:19 PM ET Oct 22, 1999 Pulse Report AUSTIN, Texas (CBS.MW) -- Shares of Pervasive Software lost two-thirds of their value Friday after the company unveiled a new spending initiative that will rip a hole in the balance sheet next year. Pervasive (PVSW: news, msgs) plans to spend big to attract Web developers to its Tango product. Hambrecht & Quist analyst Jim Pickrel slashed his projections for next year from a profit of 50 cents per share to a loss of 29 cents. Pickrel also scaled back his sales estimates for next year to $76 million from $83 million. He also cut his rating on the company to a "market perform" from "buy". He was joined in the downgrade by analysts from Needham, Robertson Stephens, First Albany and others. See Ratings Page. The stock dropped 24 1/16 to 12. Pervasive Software chief executive Ron Harris said the company took the step so the company can address the huge wireless market. "Wall Street doesn't like surprises and they don't like surprises that take down profitability," Harris said. The company will spend $13 million over the next year, mostly for marketing the new initiative. Harris added the company will start seeing "a payback" in the second half of next year. The "abrupt about-face" -- as Pickrel termed the new plan -- came after the company reported third-quarter earnings that were in line with analysts' expectations. Pervasive earned 9 cents per share on sales of $16.7 million. That compares to 6 cents of earnings on revenue of $11.8 million in the same quarter last year

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