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Technology Stocks : Aurum vs Siebel...Can Aurum compete? Can Siebel?

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To: Ignorant who wrote (9)12/5/1996 8:32:00 PM
From: kahunabear   of 47
 
Do you find it strange that your company and so many other client/server application software vendors stocks are selling at such huge valuations ? I am a software guy and have seen many software companies come and go through the years. The enthusiasm for these stocks just amazes me. There is no major barrier to entry, the technology changes rapidly, and there are already many competitors. Yet, they all seem to be trading out in space. It gives me a nosebleed. SEBL's 1.1 billion dollar valuation for a company that sold 11 million in product last quarter sounds insane. I am sure your sales and earnings will grow. They better skyrocket to support this valuation. I think these types of momentum stocks could lose up to 90% of their value in a major selloff. But maybe I am just jealous because I not in your position with a big pot of options. Luckily, I had some once. All I can say is diversify. Here today, gone tomorrow. Also, I did short a small amount of this stock or was that obvious.

Britt
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