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Technology Stocks : RATIONAL SOFTWARE- BUY OR HOLD

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To: Thomas Haegin who wrote (2745)12/21/1998 6:38:00 AM
From: Thomas Haegin  Read Replies (1) of 3115
 
Another one from TMF: I thought LMT was a RATL customer

shadow59 Number: 183 of 184
Rational's competitors mentioned previously, like Razor (Tower Concepts), TrueChange (True Software), etc., have many appealing qualities, including some great technical innovations, but the fact remains that they are 30-100 person companies. The big sales are into large development organizations where Rational's sales force can dominate a sales situation. When you pay sales people to drive a $3000 per licence sale, you've got a big advantage of a company that distributes its product over the web at $500 per seat. These products are like old English cars - interesting engineering and a good value, but not ones most companies will bet the future of their software development on. Having said that, Lockheed Martin selected Razor at its tool of choice, and Merck is using True, or so I hear.

Rational is the Ferrari of the business. Everyone would like to have one. It's expensive, and you need a full time mechanic. On the track, though, it'll blow most everything else away.

PVCS (Intersolv, now part of Microfocus) mirrors the Rational product line, but with a Chevrolet market position. You can buy PVCS at CompUSA.

CA Endevor (Computer Associates) holds a strong postion in the IBM mainframe market.

BTW, I sold my Rational at 22, having paid 13

-eom
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