Open Text Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Open Text

OTEX 33.09

+1.6%

Nov 21 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: paul tuok who wrote (17)	11/6/1996 6:06:00 PM
From: White Shoes	of 1195

The quarter loss is $0.22 per share but revenues are growing very quickly and the co. is well positioned with a good cash position. The PR guy suggested that this was a "positive quarter". Maybe a bit of a spin there, certainly not "positive earnings". The best statistic is the (slightly misleading!) increase in revenue of 546% for this Q over same Q last year! I have seen a couple of stocks like this where the loss triggers a sell-off or no reaction but then a couple of weeks later the market responds positively to rapid revenue growth or big new contracts. A Montreal co. which does packet switching had this type of story and jumped about 20% a couple of weeks after its Q results and is still moving I think (sorry, have to look up the name)... Presumably the analysts can do the math and look at the rapid increase in revenues as future positive earnings. If the demand for their product continues growing the next couple of quarters will look very good. Glad I didn't buy very much, though, I guess the earnings report will be disappointing to some. Solid management and solid product...there is a good story in PC Week (see the Open Text's home page for the link) describing the huge contract with Bell Canada. Intranet appears to be a rapid growth area, accounting for Netscape's surprising performance, for one.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next