MDSIF (formerly MDSI) Mobile Data Message Board

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Technology Stocks : MDSIF (formerly MDSI) Mobile Data

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To: bruce gordon who wrote (77)	6/19/1997 12:14:00 AM
From: Phillip Bucchi	of 226

Just think of what could happen if other start to recommend MDSI. I saw this with a company called American Power conversion from Providence, RI. It took 2 years to triple as a regional stock; when others saw the potential it increased another 10 fold. If management continues to do things right, it could happen here. They have to have the managment and technical structure in place to install product on time and within budget. Profits are made in the software end; not the hardware end. After installation, customers are charged an annual maintence fee to maintain updated software. this is where the gravy is really located. The annual maintenace fee could average 15-20% of the software part of the intial sale(exclusive of add-ons. This provides earnings that virtually go to the bottomline as well as predictabilty of earnings that analysts like. for a great example of how this could work, take a look at 10k for BMC software (BMCS. This was a very small company when it started 9 years ago. It now has $400+ Million in the bank and has made acquisitions of $100 million in cash over the past 3 years. This could happen to MDSI. (My opinion Only). Phil

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