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Technology Stocks : EDS - Recent pullback a buy opportunity???
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To: Brandon Buttons who wrote (1706)7/26/2001 6:50:17 PM
From: Daniel G. DeBusschere  Read Replies (1) of 1841
 
Short interest in EDS was up 57% recently. Sometimes I think certain analysts change ratings to help certain clients who have short positions. There is no way I can prove it in this case, but to pick out the issue on one customer GM and ignore the rest of the business including the backlog and increased margins defies any logic and indicates some sort of a targeted response. MSDW also said EDS reached their calculated discounted cash flow valuation of $64 per share and this was part of the reason to go "neutral". EDS is not a utility - the management clearly states they are following a growth strategy - this takes cash flow and limits operating margins in order to improve market share. Therefore, a discounted cash flow evaluation is interesting but does not fit the business model. MSDW knows better than this and this further gives me pause to speculate on their true motives in this case.
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