Re: Corel
I am in this business (software) and I think Corel has a 6 month target potential of $ 10-12.
There are a number of reasons I say that, but one of the main reasons is that there are only 3 Desktop Suite companies out there. Microsoft with Office 97, Lotus/IBM with SmartSuite, and then Corel with WordPerfect 8 Suite. How would you like to be in a business that has only 2 other competitiors?? With only 3 players in this market, they have an opportunity to grab marketshare, and I think they will, for these reasons:
1.It is their "CORE" business and they focus on that. That is a huge plus. They have released a good product(Wordperfect 8 Suite) and it is getting reveiwed everywhere and getting good marks by the analysts in publications like PC Magazine ect. EVERY time it gets reveiwed, that is FREE advertising for them, and when the review is good, that is icing on the cake. Everybody thinks that everybody buys Office 95 or Office 97, but that is not the case. Companies can save substantial monies by buying this "alternative" suite product. Corel has very generous and creative licenensing plans, that companies will eat up. Not the big ones like Coke, but the mid range companies, of which there are thousands and thousands. They will get a good chunk of that market. A few "crumb % points" from Microsoft and we are off to the races as their revenues climb. Corel is also doing a lot of advertising in all the trade publications. Go pick up any PC magazine and see for yourself. The other day I even saw a TV ad if you can believe it.
2. Corel Wordperfect for JAVA is also going to do well in selected companies. They will be one of 2 players when that is released in September. Lotus is coming out with a similar product and will help legitimize this marketspace. Don't count on Microsoft doing the same.
They will not help the JAVA movement by endorsing it with a product until the figure out how to stop it or embrace it. I am seeing JAVA movements everywhere.
3. They have other products that generate revenue and profit like Corel Draw and others.
Take all this and throw in the ratios, revenue and profit %'s, and you have a stock with little downside at this price, and lots of upside.
Not bad IMO.They are better positioned than they have ever been I think. |
