Security Dynamics SDTI -- How much money can they make?? Message Board

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Technology Stocks : Security Dynamics SDTI -- How much money can they make??

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To: Juster who wrote (1447)	5/25/1999 7:27:00 AM
From: Norm Demers	Read Replies (1) of 1614

Found this on Yahoo: messages.yahoo.com BT Alex Brown upgrades to Strong Buy by: empireH (31/M) 7586 of 7592 After the bell Mopnday BT Alex Brown upgraded SDTI from BUY tp STRONG BUY .... here are cut and pasted excepts of the report ... We have upgraded our investment rating on the stock of Security Dynamics to a "strong buy" from "buy" based on solid 1Q 1999 results combined with a compelling valuation. SDI posted its second strong quarter of revenue, and first quarter of in-line EPS after a very difficult 1998. Unlike the commission payment that led to a significant EPS miss in 4Q 1998, there were no surprises. For the second consecutive quarter, the book-to-bill ratio was above 1. We believe that investors may begin to give SDI a second look for the following reasons. · SDI's business has become more predictable and linear as shown in both RSA and SDI growth. · Keon is nearing its first commercial ship, and SDI may soon be viewed as a beneficiary instead of a victim, of the coming PKI wave · The balance sheet is very strong, in our view, with $540 million in cash and Verisign stock. Although we seldom believe that investing in value technology stocks works in the long-term, we feel there comes a time when merely in-line performance should drive a stock price higher. We believe that this is such a case. With a reasonable price target of 30x our CY 2000 EPS estimate of $0.92, we think the stock should trade at $27 within 6-12 months; and if the Company should repurchase more stock or the Keon product outperforms expectations, the shares could trade considerably higher. Posted: 05/24/99, 11:36PM EDT as a reply to: Msg 7585 by seekzip View Replies to this Message

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