NT Accounting Software (GPSI, PSQL, SOTA, TMBS) Message Board

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Technology Stocks : NT Accounting Software (GPSI, PSQL, SOTA, TMBS)

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To: Jalali who wrote (65)	9/21/1997 4:34:00 PM
From: Alan A. Hicks	of 149

SOTA hit another new 52-week high at $15 5/8 on five-times normal volume Friday with persistent block buying throughout the day. This marks a clear break above the $14 - $14 3/4 resistance level which has been the upper limit of a one year trading range going back to last September between $14 3/4 and $8 3/4. By classical chart analysis, SOTA should trend towards its old high of $19 3/4 with new support in the $14 - $14 3/4 level. There was no news to trigger the buying. Interest appears to be increasing in SOTA after winning the Best Technology award from Microsoft at the Industry Solutions Awards last week over 35 competitors including Great Plains. The break above an important resistance level, SOTA's low valuation relative to its competitors, new products across SOTAs full product line, and increasing confidence that SOTA will have a strong fourth quarter and 1998 are probably all responsible for increasing activity in SOTA shares. Analyst expectations are for 1997 are $0.55 for 1997, up over 100 percent, and up another 65 to 80 per cent in 1998 to $0.85 to $1.00. Even at $15 5/8 SOTA is still less than half the current valuation of Great Plains of 6.7 times revenues. At the Great Plains' valuation, SOTA would have a share price of $35 on expected 1997 revenues of $63 million and $45 share price on expected 1998 revenues of $85 million. If SOTA is able to execute over the next year, there is plently of room for upside. In the current quarter, VARs I have checked with have indicated business has been good over the summer. Analyst expectations are for $0.09 for the quarter against a loss last year and $15.9 to $16 million in revenues for the quarter, up 40 to 45 percent over last year. There has not been any indication from analysts of any change in these expectations. More important in the short-term, SOTA needs to release Acuity 2.0 by end of the current quarter.

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