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Technology Stocks : Open Text
OTEX 34.56-3.9%Nov 7 9:30 AM EST

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To: Thomas DeGagne who wrote (656)1/23/1998 7:59:00 PM
From: PeakClimber  Read Replies (1) of 1195
 
> Wall Street seems to be ignoring...< Wall St just represents
the market/demand situation. I'm not on Wall ST but one reason for
the caution about OTEXF could be their DSO. They have $11mil in
receivables for $10 mil in sales. This is just too high. DCTM, for
example, has about 70 days DSO. The >100 days for OTEXF makes
even a person like me (with no accounting background) suspicious
as to whether they're stuffing their channels or otherwise
recognizing revenue in a aggressive way.

I'll wait to see how this number changes as they go forward before
buying any stock! If customers are satisfied and pay up, DSOs should go down and that would be a good sign that OTEXF's not just selling
shelfware :-)
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