There is plenty of precedent here. Take a look at: SAP, BAANF, PSFT, VNTV, CLFY, FILE, HRBC, MANU, RMDY, BEAS, CA.... They all fell to 1-3 times run-rate revenues (down to 1X in October, a little higher now). Then, if they have cash, there they sit. This one, however, has a weak division and a strong division. It may therefore bounce on data warehousing strength via Essbase (check out IFMX).
Bottom line, this one's assets look to be greater than its trading price. It should recover nicely, but as with all the other stocks listed above, Y2k is an issue. We will have to live with that. Maybe you wait six months. I got a 3x run in RATL by buying at $8 when things looked lousy. |
