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Technology Stocks : Corel - What is the deal with this company?

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To: Skye who wrote (185)8/1/1996 9:13:00 PM
From: Steve Hoberty   of 347
 
Skye and ALL,

I checked out the Corel "picture-on-demand" service on the Web site. I like it and think it is a great idea. Seven bucks a picture could add up to a lot of profit. It seems that ever since Corel started thinking of buying Wordperfect they have had this huge burst of creativity. It seems like their into a million things. My thoughts are that this burst of creative thinking will eventually result in a huge surge in stock price. The question is when. I don't own any shares at the present time; however, I am strongly thinking of it. I think it may get volatile due the unsuredness of near term results. The stock price could take a temporary dive sometime within the next couple of months (maybe a low of 7 ?). Although a little scary now, long term I think it is brilliant for Corel to massively advertize even though it may hurt them in the short term. It is my opinion that it is extremely important to advertize now to gain market share. Huge market share is an absolute must if this company is to survive. The more market share the greater the growth and the greater rise in price. MS may make some big strides, but Corel isn't going to be sitting on the sidelines. As creative as these people are becoming I do not doubt their ability to come out with very attractive and capable updates of WP or any other product for that matter in a timely and effective fashion.

I work as an engineer for a divison of the biggest employer in the US and have used WordPerfect on my job every day for 8 years. A few years ago we were forced to buy SUN stations running the UNIX operating system. We are not allowed to purchase PCs and are stuck in the UNIX environment (I would love to have a cheap CYRIX based 166 MHz machine or pentium to do the bulk of my work), there is a version of WP for the SUN and to my knowledge there is no version of MS word for UNIX. Although PCs are by far the most popular computing platform, there are huge number of UNIX based users who appreciate easy to use products such as the UNIX version of COREL DRAW and WP.

I also like the Corel Java suite idea. This could be big - very big.

Although very optimistic, I am still a little afraid to jump in at this point. I don't like the negative trend.

By the way I have tried MS Word on several occasions and have teached my grandmother (82 years old) how to use it (she got it free with her Gateway last year) and still prefer WP by a very wide margin. I recently purchased Corel WP 7 Suite for my grandmother and she has since switched over.

I expect that sometime this fall Corel will be at least 15 a share. Just too much positive activity for the stock to remain low. Sure would like to make back a little money this year - lost my behind in the semi market.

Good Luck to All.
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