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Technology Stocks : STARBASE (SBAS)- InfoWorld Hot Product Review

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To: JakeStraw who wrote (1300)9/21/2000 5:02:19 AM
From: nihil   of 1502
 
IMO SBAS is a promising software play. It has invested a bundle (thus the -62 million owners equity,) and has products which are selling more and more each qtr. Sales are not recognized immediately, so currently cash basis earnings are understated by using standard accrual accounting. To determine where SBAS is going you must watch quarter to quarter and year to year sales which must grow very rapidly for SBAS success. Losses should be kept to a few million a quarter, but it would be a mistake to try to milk this cow by stopping growth. More and more customers getting locked into SBAS systems increases their captive market. As SBAS dominates its markets (if it does) and growth of sales must slow, SBAS will naturally turn profitable. At this point the price should surge. It is most important to own this stock in the quarter before this occurs.
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