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Technology Stocks : Corel Corp.

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To: A. Hayer who wrote (3730)11/29/1997 2:16:00 PM
From: Alomex  Read Replies (1) of 9798
 
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.

Have you learnt nothing?

This whole debacle started when it turned out that Corel had sales of about $70 million a quarter, as oposed to over $100 million, as Corel had previously reported.

Since the market share of Draw and WP continues to slip, revenues will continue their decline.

Once you take this into consideration the price to sales ratio is more like 0.7, all while bleeding at a rate of $10-20 million in losses per quarter.

Corel might be slightly undervalued as it stands. But I'll wait until they boot Cowpland before buying in again...
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