EDS - Recent pullback a buy opportunity??? Message Board

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Technology Stocks : EDS - Recent pullback a buy opportunity???

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To: Daniel G. DeBusschere who wrote (1579)	6/9/2000 11:40:00 AM
From: Daniel G. DeBusschere	Read Replies (1) of 1841

It looks like the management provided guidance- <<On Friday, Merrill Lynch?s Stephen McClellan downgraded EDS to ?accumulate? from ?long-term buy.? McClellan told CBS.MarketWatch.com that late Thursday the company began calling analysts at home with revised revenue estimates for its base business. EDS revised revenue growth expectations for the second quarter to 2 percent from 6 percent; to 6 percent from the low double digits in the third quarter; and to 11 percent from the 14-16 percent range in the fourth quarter. EDS did not revise estimates for its GM business or earnings per share. ?They didn?t have much of a reason, other than foreign currency and divestitures they?d done last year, which is old news,? McClellan said. ?A lot of investors are trying to figure out what?s going on.?>> **************************** Me too - but at the current price of $45 a share, EDS should be a very attractive long term bargain. The sales have been there, the gross margin has been improving, and the backlog of business is very significant. With CSC going for $95 and turning in industry growth rates, it should not be a stretch for Richard Brown and the team to match or exceed his performance objectives. There is nothing wrong with the available market.

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