Remedy Taking a hit why? Message Board

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Technology Stocks : Remedy Taking a hit why?

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To: T. L. who wrote (279)	9/23/1997 8:27:00 PM
From: Clam Clam	of 763

I think Remedy was up today simply because investors were expecting bad news to develop out of the conference and it didn't happen. It has been rumored RMDY has to get a lot of software shipped in last two to four weeks in order to make quarterly estimates. Moreover, Europe is seasonally slow in the summertime and RMDY's US sales force isn't fully productive yet - it takes 9 months to get a rep up to normal quota run-rate. However, at 25x earnings the only way this stock was going down was if they missed the quarter and provided a mediocre outlook for Q4 (possible but not something to bet on, short sellers). Unless the help-desk market slows materially, RMDY will do fine. It will not likely be a HUGE (T.S.) winner but $60+ over next twelve months seems quite likely. RMDY has growing market share and little competition. DSO's will likely be up this quarter but I think the RMDY story is getting clearer rather than murkier. I was not a fan of RMDY after they reported poor March results but RMDY is a much safer bet now. IBM should kick in nicely over next few quarters mitigating weakness in Europe, the direct sales force and the Government sector. Net net, not too exciting but a quality company trading at a still reasonable price.

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