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Technology Stocks : Corel Corp.

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To: Lex who wrote (3728)	11/28/1997 11:14:00 PM
From: A. Hayer	Read Replies (5) of 9798

Wrong. The price to sales ratio at current prices is 0.4. I challenge you to find me another software company trading at that P/S ratio with annual sales greater than $300M US. The market cap is at an unbelievable low of $155M US. Corel right now has zero credibility. The stock price reflects that. If you believe that Cowpland knows what he is doing, you will think this was the investment of a lifetime after the next 12 months. If all the money spent on R&D over the last 18 months pays off, 0.4x sales will easily become at least 3x sales, if not more. If R&D doesn't pay off, Corel has no option but to cut R&D from current levels of 23% of sales down to say at least 10%. Either way, the company is either a larger profitable company 12 months from now or a smaller one. Still, I bet it trades much higher than current levels in 12 months. One other comment ... Corel bought back close to 800,000 shares this month alone. Now why would they do that ? Regards, ah P.S. I have no comments to any responses. Perhaps in a few months when the outlook is much different.

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