BEAS DISH news :
biz.yahoo.com
Even as evolution continues to weed out the weakest dot-coms, the
overall Internet is enjoying strong growth fueled by software
vendors instituting web functionality into their products and the
aggressive entry of traditional companies into e-commerce.
Longer-term, the big winners in this trend are companies whose
products make up the infrastructure of the Internet. One of the
infrastructure firms pulling away from the pack is BEA Systems.
BEA Tuxedo has become the platform of choice for the big boys
with sites processing millions of transactions daily. Customers
include Amazon.com, United Airlines and FedEx. Their WebLogic
application server software enables web applications to work
with legacy systems and older networks. A recent agreement with
Dell will have the PC giant pre-installing WebLogic on their
servers. With BEA products becoming standards in their respective
arena, the company becomes a solid choice for long-term
investors. In addition, an attractive technical picture for the
shares makes it worthy of consideration for a short-term play.
On a fundamental basis, the company stock is expensive. It has
a current P/E of 160 and a forward P/E of 95 for 2001. However,
this is the price you pay for companies with dominate positions
in high growth markets. Last year, the company earned 25-cents
per share on sales of $820 million. Despite the weak economy,
this year, analysts forecast a 68-percent increase in earnings
to 42-cents per share on a 46-percent pop in sales to $1.2 billion.
Next year, analysts project the growth will continue unabated
with an additional 48-percent rise in profits to 62-cents per
share and a 33-percent in sales to $1.6 billion. The company
has a strong balance sheet with $907 million in cash and $563
million in long-term debt.
Since the early April low of $20.19, a chart of BEAS share has
formed a bullish ascending triangle pattern. This is characterized
by a series of higher lows, while a horizontal line can be drawn
across minor highs at about $42.50. Typically, this pattern
resolves itself within 3 months with an upside break. In the
short-term, a break should produce a test of resistance at $46.00,
while in the longer-term a move to test the February 15th high
of $57.94 would be a reasonable target. Presently, BEAS shares
are in a basing pattern meaning they are trading within a tight
range of $39.00 and $42.50. Although, the shares are currently
testing the lower range of support, the declining volume suggests
this support will hold. This means we are at a good entry point
for investors wanting to play a break of the triangle, or shorter
term traders looking to profit from a move to the top end of the
basing pattern with a bonus possibility of a more profitable
break of the triangle.
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