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Technology Stocks : Corel Corp.

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To: Leo Mitkievicz who wrote (6614)5/10/1999 1:43:00 PM
From: Scott Volmar  Read Replies (2) of 9798
 
Leo, Despite the recent positive talk about Linux, and IBM's interest, who knows what the market will be. So you're right. Shareholders cannot pin hopes on Corel's forthcoming Linux desktop and/or WP Linux alone.

After digesting PC Magazine's review of the three new 2000 suite's, the hope for increased WP sales appears dim. For the most part, all three suite's received good commendation. Unfortunately, Microsoft's edge in integration with Windows and the Web gets the "recommendation," even though the three suites are more on par than perhaps they have ever been. Microsoft has also added some nice little innovations. Looks like Microsoft will keep their 90% share of the market and probably increase it, all at a high price.

Worse, Draw 9 is being released in an increasingly crowded market, including Microsoft's Photo-Draw product. It's difficult to see a long term increase in sales here.

Q2 revenues will be skewed as the new releases enter the distribution channel, which sets up Q3 as a make or break quarter for management. Will the new releases actually take off? Not sure if management has enough "hot-air" left to make it happen. I'm quite tempted to dump my shares. I'm trying to convince myself to wait another quarter or two.

Deflated,

Scott
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