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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel?

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To: Harry Franks who wrote (5044)4/28/1999 5:25:00 AM
From: Harry Franks  Read Replies (1) of 20297
 
I'll be really curious how this stock reacts today. First, the "rumored" interest of Yahoo! should give some support. However, the analysts are going to have to take down there June Quarterly numbers by 44% (i.e. from .09 per share to .05 per share). The estimates from Yahoo/Zacks are as follows:
June Quarter
Average Estimate: .09
# of analysts: 10
Low Estimate: .05
High Estimate: .11
Year Ago EPS: .03

If the rumored price is 3 billion that is only a 15% premium off yesterday's close (or approx. 58.65 per share). Given that the company traded at 69 a couple weeks ago this would be a steal. I don't think this company would get taken out so cheaply. Then again, that is 125 times estimated earnings for the year ending June 2000 (.47 per share according to Yahoo/Zacks).

What does everyone else think? Are we looking at a rally on the takeover potential, or a drop based on the lowering of estimates?
I just hope in the earnings estimate climb-down, the analysts don't also cut their ratings on this stock. Then again, I could always use the opportunity to add to my position.

Harry
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