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Technology Stocks : Help Desk Software Niche (RMDY, INFR, SWRT)
VNTV 77.60+2.6%Jan 12 4:00 PM EST

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From: Warren Gates5/1/1996 1:02:00 PM
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SCOP (SCOPUS TECHNOLOGY) - A SOFTWARE COMPANY THAT SELLS ENTERPRISE-READY
HELP DESK/SUPPORT PRODUCTS JUST REPORTED YESTERDAY AFTER THE MARKET CLOSE:

REVENUES up 80% from same quarter 1995
EARNINGS up 300% from same quarter 1995
EARNINGS up 100% from previous quarter

EPS came in at $.10. 3 Analysts following the company have
strong buy/ buy ratings. Expected EPS was $.07.
At $20 stock has a current PE of 50 (base on $.10 X 4, a conservative figure). Sector leader Remedy software
(RMDY) reported $.14 a couple of weeks ago. Price now is $70 - $80.

WHAT IS THE CATCH> SCOP has low visibility, relatively unkonwn. Just went public November 1995.

WHAT IS THE SCOOP. 12 M shares outstanding. Sold 2 - 3 M sares to the public. Insiders control the rest.
VERY VERY LOW FLOAT.
TRADERS!!! YOU JUST HAVE TO LOVE THIS BABY>

A BIG UPTICK IN VOLUME WLLL SURELY SQUEEZE THOSE MARKET MAKERS>

STOCK had a pretty nice run-up during the last 3 weeks. Opened strong today, but went down a couple of
points. Is this profit taking? Or the market makers just playing it down so they don't get burned if word goes
around.

Why should this stock be $28 (at least).

Stock has been selling around $14-$15 for quite some time. At previous quarter's EPS of $.05. Present earnings
double this. What should happen to the stock. It should sell at $28 to $30.

And this does not take yet into account the earnings surprise. PE expansion occurs when blowout quarters are
reported. If it start selling at Remedy's PE, stock should be $40 to $50.

Now tell me, am I right or am I right?
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