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Technology Stocks : BEA Systems (BEAS) - Undiscovered Growth Stock

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To: cmchang who wrote (1342)9/23/2000 1:45:53 PM
From: Howard Bennett  Read Replies (1) of 2477
 
EPS and momentum BEAS and SEBL

According to Yahoo finance (how trustworthy are the numbers?)....both SEBL and BEAS are enjoying astounding EPS growth this year -- 141% and 108% respectively.

The next FY though the growth seems to be somewhat muted -- 38% and 49% respectively.

This, to me, would imply that these companies would start to give guidance to the street that revenue and EPS growth will not continue as robustly as in the past year. This further inplies to me a P/E contraction.

To me this is classic momentum -- which usually ends badly for those buying now after a huge momentum run.

Post Scriptum -- I love BEAS Tuxedo product. So I'm a fan. Before going-off on me with a personal attack know this: there is no malace in this text....I'm just cogitating out loud.
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