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Technology Stocks : American Software (AMSWA)

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To: Nicholas P. Acquaviva Jr. who wrote ()8/30/1996 10:58:00 PM
From: Wayners   of 25
 
Nicholas,
I just got in at 5.5. after seeing that this last earnings report is supposed to be the last negative earnings through 1998. Earnings quarter to quarter are supposed to go from -.03 to +.05 in the third quarter. I've seen the stock pull back to as low as 4.5. I think its a buying opportunity whenever the stock dips below 4.5. I think its going to take a few months for the stock to break the 6.0 barrier. The company really needs to exceed second quarter expectations by selling a lot of their Supply Chain Software and providing services and support. Over the next 2 years the company's earnings are really supposed to take off. The company says that all the positioning for future growth and charge offs (i.e legacy products)are behind it. I keep my eye out each day for any news on the company and have'nt seen any news since their 21 Aug 96 earnings report. The next earnings report is due out on 20 Nov 96 which I hope will exceed the .01 per share expection by a penny or something. The fundamentals of the company are great -- No long term debt and what seems to be a real good software product out that has been bought by Coca Cola for instance. Stick with it.
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