Here is the update on the AXXel buy rec-FYI
March 12, 2000
Rogue Wave Software [RWAV-$10.38]-Follow up
Using, AXXel Knutson's
VTAR?
["Volume Trade Analysis Research"?]
"Manage the risk?the profits will take care of themselves"
"In this business, being right is not as important as making money?consistently, and one of primary tenets of the quest is the avoidance of the 'obvious risk'"
From AXXel Knutson,
EVP & Director, Institutional Equity Research
a premium investor service of
Platinum Equities, Inc.
Member NASD & SIPC
80 Pine Street-32nd Fl-New York City 10005
Email: tradingweapon@aol.com
Telephone: 800-696-9002 or 212-271-0075 FAX: 212-271-0092
Platinum is not yet registered in the state of Maine & the Commonwealth of Puerto Rico and we are not currently in a position to service your investment needs in those jurisdictions. We clear our securities business through RPR Correspondent Clearing, a division of Dain Rauscher Inc.
Trading Engine? VTAR? [Volume Trade Analysis Research?]
Trade and service marked by and owned by Axxel Knutson and is licensed to Platinum Equities, Inc. under revocable license. ¸ 1999 all rights reserved, Axxel Knutson
Chart is courtesy of R.W. Mansfield & Co.
3/12/00: In January and in February you got your chance to acquire RWAV below $8.00 and as we suggested, "Any pullback to the $5 « - 7 range would elicit an upgrade to "Strong Buy." RWAV was quoted on 12/13/99 at $9 1/8. RWAV reported earnings in line with analyst expectations and given the fact that the first quarter is their worst, they still managed to expand sales.
With the stock now in double digits, it is unlikely that we will see those numbers again and we would recommend that investors average their positions up. We continue to rate RWAV a strong buy and recommend that you visit their website to become familiar with their balance sheet and income statements.
Here is part of their quarterly report:
Rogue Wave Software Reports 1Q00 Fiscal Results
Company Revenue Consistent with Analysts' Consensus
Boulder, CO - January 12, 2000 - Rogue Wave Software (NASDAQ: RWAV)
today reported financial results for its first fiscal quarter, ended December 31,
1999. Revenue for the quarter was $12.6 million, up 4% from the $12.2 million
achieved in the first fiscal quarter of 1999, and down 7% from the $13.5 million
achieved in 4Q99. Net diluted loss for the quarter was ($507,000) or ($0.05) per
share compared to net diluted earnings of $889,000 or $0.08 per share achieved
during 1Q99. Excluding the impact of goodwill amortization and severance costs,
net income was $3,000 or $0.00 per share for 1Q00.
"With Y2K concerns and anticipation of Windows 2000, I am very pleased that we
were able to meet analyst expectations this quarter," states Bruce Coleman, CEO of
Rogue Wave. "The first quarter is traditionally our weakest and the fact that we
were able to grow revenue despite these wild cards is a tribute to the value our
solutions provide. I am especially pleased with the strong contribution from Europe
this quarter."
Rogue Wave Software, Inc.
Rogue Wave Software, Inc. (NASDAQ: RWAV) is a leading provider of software
solutions for building high performance, distributed, enterprise and Internet
applications. Rogue Wave InterNet Architecture (RNA) is a flexible component
framework that makes it easy to develop and deploy scalable applications that
interoperate throughout disparate computing environments. The Company's C++,
COM, CORBA, and Java products, along with its Professional Services Group,
provide "components without limits" to more than 100,000 developers worldwide
who build applications that scale to the enterprise, honor legacy investments, are
highly customizable and simply work. Rogue Wave is headquartered in Boulder,
Colorado. For more information, visit us on the Internet at
roguewave.com or call (800) 487-3217.
GENERAL
Rogue Wave is a leading provider of software solutions for creating and managing enterprise systems using object-oriented, component technology. The company offers software components for building distributed client-server, intranet and Internet applications which scale to the enterprise, honor legacy investments, and are highly customizable. Company's products and Professional Services Group provide organizations worldwide with the business expertise and technology to build, manage and grow scalable enterprise-class systems.
Rogue Wave's products are marketed to professional programmers in all industrial segments, in all geographic locations.
Through multiple distribution channels, the Company's products are designed to enable customers to construct robust applications quickly, with higher quality, across multiple platforms, while reducing the complexity associated with the development process. The Company provides customers with proven object-oriented development technology so that they can better apply the principles of software reuse to their own software development efforts. Rogue Wave's products are designed to be general purpose in nature, supporting a broad range of development environments including: Windows, Windows CE, Windows NT, Unix, AS/400 and OS/390 and a wide range of development languages and methodologies including: C++, MFC, CORBA, COM and Java.
INDUSTRY BACKGROUND
Increasing Dependence on Software. Businesses are increasingly relying on information systems as a strategic resource and as a way of differentiating themselves from their competitors. A sophisticated enterprise-wide information system can allow a company to take advantage of new markets before a competitor, reduce operating expenses and increase ties with suppliers, customers and other alliance partners. More specifically, Internet and intranet technologies can be particularly effective in extending the information system outside the bounds of a company, creating even more opportunities. Of all the pieces that
make up an information system, software plays the most critical role. Therefore, businesses looking to achieve competitive advantage through their information systems are becoming more and more dependent on software.
Need For Improved Software Development Technologies and Methods
Software development technologies and methods have not kept pace with the increasing reliance on software systems. In fact, the intricacies of modern software systems have tended to make the software development process longer, more complicated and error prone.
Adoption of Object-Oriented Technologies
To address the difficulties of developing and maintaining complex software systems, organizations are adopting object-oriented technologies and development methodologies. Object-oriented programming allows software to be written in terms of objects (components) that are used as building blocks to model real-world components and systems. Objects are self-contained units that encapsulate a collection of data and related procedures. Although objects may be internally complex, they are designed to have simple interfaces that allow programmers to develop and change components independently without affecting other segments of the software system. The generalized, self-contained nature of well-designed objects allows them to be reused within a single software system and in subsequent applications. To a large extent, developing software applications then becomes a matter of assembling new and existing objects, rather than writing entire programs from scratch, resulting significantly reduced development times and improved software quality. In addition, because the internal details of each object are relatively insulated from the rest of the system, objects can be tested, modified and maintained independently."
ACCOUNT MANAGEMENT:
In response to inquiries relative to account management by AXXel Knutson, here is the deal: Accounts are handled by Knutson and the basic charge is a commission on transactions of 1% of the transaction amount in and the same going out. Client selected stocks may not enter the account unless approved by AXXel and this is not a likely occurrence. The minimum account accepted is $100,000 and this will very likely increase in 2000. Sob stories are listened to for amounts under $100k but rarely accepted unless AXXel is in the mood. These accounts tend to be trading accounts so don't even ask if you can't stand the activity. AXXel does not personally trade in the same stocks as clients or those written about in his newsletters or spoken about in media appearances although Platinum Equities and its officers may take and have positions. Those interested in additional information may call at 800-696-9002 or 908-647-5750 or email AXXel at axxel@blast.net. There are no investment management fees and no sharing of profits/losses.
DISCLAIMER
Investment decisions should not be based solely on our proprietary indicators, which are intended as an adjunct to your additional analysis. Please accept these comments as market commentary. We do not intend these comments to replace detailed fundamental analysis. We urge you to accomplish that additional research via your contacts on the Internet or through a trusted financial advisor. If you want additional information, we will give it upon your request.
This report has been prepared from original sources and company data we believe to be reliable, but we make no representation as to its accuracy or completeness. Additional information is available upon request. This report is published solely for information purposes. It is not to be construed either as an offer to buy or sell or the solicitation of an offer to buy or sell any security or the provision of or an offer to provide investment services in any state where such an offer, solicitation or provision would be illegal. Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice and we may not update that change to you. Platinum Equities, Inc., its affiliates and subsidiaries and/or their officers and employees may from time to time acquire, hold, or sell a position in the securities mentioned herein.
The author of this report, Axxel Knutson, does not invest in any of the securities mentioned in this report nor does his immediate family unless such securities are included in mutual funds or index options. Equity investment involves risk of capital loss. We recommend that your portfolio be diversified by company size, industry group, geographic region and by currency.
It should not be assumed that future selections will be profitable or will equal the performance of past selections. Securities listed herein illustrate selections made using proprietary indicators know as VTAR? [Volume Trade Analysis Research?]. These names, VTAR?, Trading Engine?, tradingengine.com?, Volume Trade Analysis Research?, are servicemarks/trademarks of AXXel Knutson and are given under revocable license to Platinum Equities, Inc. ¸ 1999-2000, All rights reserved, Axxel Knutson and Platinum Equities, Inc. Diversify. Got it?
All recommendations and commentary are directed toward sophisticated, aggressive traders who have significant experience trading in a volatile market and who possess the financial resources to risk a loss of some or all of their invested funds. Commissions, and if you use margin, interest charges will lessen any return on investment. VTAR [Volume Trade Analysis Research] centers around the proprietary analysis of trading volume, price, general fundamental analysis, beta concerns, group rotation and detailed analysis of risk as it relates to entry and exit points in highly liquid stocks. Control the risk?the profits will take care of themselves? AXXel Knutson
The above chart is courtesy of R.W. Mansfield & Co., MANSFIELD STOCK CHARTS
2973 KENNEDY BLVD. JERSEY CITY, NJ 07306. Phone: 201-795-0629, Toll free: 1877-MANSFLD (626-7353) 9am-5pm (Eastern) Monday through Friday Fax: 201-795-5476
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