BORL: Time to BUY! Message Board

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Technology Stocks : BORL: Time to BUY!

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To: MENSO who wrote (2261)	3/10/1997 5:07:00 PM
From: Michael Coley	of 10836

Leo, >> Borland's technology is only playing catch-up as far as I can tell. This is one area where I would definitely disagree with you. Borland is, and almost always has been the technology leader in the software development community. Where it is definitely NOT the leader has traditionally been in the marketing of that technology. I hesitate to even say that they are playing catch-up in that area (marketing), as I haven't seen enough evidence (yet) that they recognize this deficiency. The advertising campaign for Borland C++Builder might qualify, but I would like to see some results first. I would be EXTREMELY excited and impressed if they appoint a VP of Marketing. If they did that, I would probably double my position. >> To expect it to remain at ~$8 for two entire quarters is as >> unrealistic as it is to expect it to climb much higher in the short term. I agree with part of this. It will definitely not stay at $8 for two quarters. But I disagree in the direction. One thing that you have to realize about Borland is that they have sunk into a groove where they have been doing $35-$50 million per quarter in sales and roughly breaking even. This has all been on older products--nothing really new. With one MAJOR new product released and two more coming in the next two quarters, (and a new goal of releasing at least one a quarter), revenues could fairly easily jump to $75 million per quarter. That could very easily generate a net income of 10%, which equates to $30 million per year. That's close to $1.00 EPS, which would make Borland extremely underpriced at current levels. And I feel that these are very conservative estimates. Why hasn't the stock price reflected this yet? I feel that the street is waiting for a good quarter or two. The price will gradually drift up as the possibilities start to change into realities. - Michael Coley - i1.net

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