David: Trading mania? There was plenty, but the market has just re-discovered Corel. Although CORL may have looked like a typical "net stock" today, deep fundamentals exist to back up the price. Moreover, had CORL closed at its high today, around US $27, its market cap would still be just a fraction of RHAT. Unlike Redhat, Corel has substantial revenue and accompanying profit.
Corel completes its final quarter tomorrow, with earnings due out in just a few weeks. With the Linux desktop on the market, increasing graphics revenue, and WP9, Q4 should be a winner.
Further, you should have seen the interest in Corel's Linux Desktop at Comdex. Each time I passed by Corel's exhibit, it was standing room only. Corel gave a sneak-peek of Quattro Pro and Corel Draw running on Linux. These demo's looked great. Point is, there's a lot of momentum building to propel CORL further.
Corel has been operating at about $240 M per year, so figuring a market cap at a very reasonable 10 x rev's indicates that CORL should be trading at US $35 right now, even in light of a potentially strong Q4.
I'm long to $35 by December 20th. With WP 2000 and Corel Draw for Linux early set for early 2000, the stock will rise beyond that.
As I speak with enthusiasm here, it should be noted I was wrong about Redhat. Thought it would come down after a month or two. But I was also wrong about Linux. Turns out to be a far stronger force than I thought.
David, glad to see you in the "green."
Up, Up and Away!
Scott |
