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Technology Stocks : Tandem's Prospects

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To: Barry P. Sullivan who wrote (78)6/18/1997 11:28:00 AM
From: DeadHead   of 99
 
Re $20 --

Wallstreet is clearly waking up to the potential of ServerNet. Also, that fact that Tandem is scaling down to NTs removes the fear of getting "locked into" proprietary technology when purchasing their high-end Himalaya servers. Even though their NT solutions may not yet be ready for prime time, Tandem's new open strategy should help move their existing high-end products.

I don't have enough information on their licensing fees for ServerNet, but this technology has a great deal of potential and appears to be attacting a lot of attention.

With a company as established as Tandem, the only thing that moves the stock are earnings. As good as the current stories are, these stories are only good at inspiring the confidence of Tandem's customers, not Wallstreet. However, with projected earnings of 1.05 for this year, we're looking at a $22 stock, assuming the PE remains at 21.
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