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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: nokomis who wrote (48944)	7/7/1999 2:03:00 PM
From: Money Maker (MM)	Respond to of 120523

AAPL - $50 1/4 up $2 7/8. MM

To: nokomis who wrote (48944)	7/7/1999 2:04:00 PM
From: kendall harmon	Read Replies (1) \| Respond to of 120523

NEON is getting quite a hammering. Definitely a possible bounce play. Studying and watching here. New Era of Networks Tumbles After 2nd-Qtr Warning By Anthony Massucci Denver, July 7 (Bloomberg) -- Shares of New Era of Networks Inc., the No. 1 maker of software linking incompatible computer programs, tumbled as much as 63 percent after the Denver-based company warned of an unexpected loss in the second quarter. New Era plummeted 25 1/16 to 19 in midday trading of 21.1 million shares, making it the second most active U.S. stock. Earlier, the shares touched 16 1/2, an $854 million drop in market value. It has retreated from a 52-week high of 78 3/8 in early April, after climbing from 12 in October. New Era, led by former Goldman, Sachs & Co. chief information technology officer Rick Adam, shocked investors by warning of a loss after consistently beating earnings estimates in recent quarters. The shares leapt sevenfold last year as demand soared for ''middleware,'' which allows different brands of computer hardware and software to communicate, making it easy for recently merged corporations to analyze and share data. ''This was a surprise to most of us on the street,'' said Dewey Awad, an analyst at SoundView Technology Group. ''Until they can get their house in order we still see risk going forward in the next couple of quarters.'' As investor confidence and the stock price grew in recent quarters, the company embarked on a buying spree that, in part, led to the current shortfall, analysts said. New Era, better known by its stock symbol Neon, said it will have a loss of 12 cents to 22 cents a share stemming from merger and acquisition costs and lower-than-expected sales. It was forecast to earn 12 cents, the average estimate of nine analysts polled by First Call Corp. Revenue will rise to $25 million to $30 million from $11.5 million in the year-earlier period, though lower than the $29.6 million in first-quarter sales. Awad said the company gave analysts few hints as to what went wrong in a conference call late yesterday. Besides digesting recent acquisitions, the company is having problems converting prospects into sales and is dealing with new competition, he said. Awad sees the stock mired in a trading range in the low 20s until early next year. He lowered his rating to ''buy'' from ''strong buy'' and removed the stock from his firm's focus list. Acquiring Rivals Neon has been acquiring rivals that are expert at handling various types of business software as well as companies that focus on specific industries, such as insurance and telecommunications. Neon wants to offer all types of middleware in one product line that can work with all dominant corporate software. Last month, the company agreed to buy closely held Convoy Corp. for about $42 million in stock to broaden its product line. Convoy's programs are tailored to work with software from PeopleSoft Inc., the No. 2 maker of business-management software. In May, Neon bought SLI International AG, which helps programs from No. 1 corporate software maker SAP AG work with older data. Neon in April also bought Vie System Inc., a closely held New Jersey company, to acquire additional software technology. The company, which has said it wants to be a ''one-stop'' shop, made four acquisitions in the last six months, adding about 400 employees. Neon had revenue of $65.8 million last year. Neon's main rival in the market for so-called enterprise application integration software is TSI International Software Ltd. Its shares fell 1 9/16 to 23 15/16 in midday trading. Wrong Way ''Apparently, both revenues and expenses went the wrong way,'' Gibbs Moody, analyst at Warburg Dillion Read LLC, wrote in a report. Moody cut his 1999 earnings estimate to 25 cents a share, from 62 cents and 2000 estimate to 60 cents, from 90 cents. New Era could fall as much as $9 million short of his $33.5 million revenue estimate for the quarter, he said. ''We believe New Era's business... is slowing,'' Moody said. The acquisition and slow-growth problems won't be quickly resolved, he added. He downgraded Neon to ''hold'' from ''strong buy.'' At least six other analysts cut their investment ratings on the company's shares. In the last few months, six analysts either raised or reiterated their rating on Neon's shares. ''For several quarters, there's going to be a lot of nervousness in getting back into Neon (shares),'' SoundView's Awad said. Neon said growth expenses and failure to close as many sales as it anticipated contributed to the loss. The forecast excludes amortization related to an acquisition and other charges, and assumes a 35 percent tax rate. New Era issued its loss warning after the close of U.S. markets late yesterday.

To: nokomis who wrote (48944)	7/7/1999 2:07:00 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

Genius that I am PHCM is now down although I covered my short.. Shorting gang is never easy. but 1 or points here and there equates to 1 or 2 thousand so I'd rather cover and limit my losses. This morning I was up over 5k before the day even began (spoiling it however with the PHCM) but I would NEVER hold an short position a long time, or a put longer than a 2-5 days. PCHM is now 1/4 below my short price (1/4 point profit).. but I won't give up.

To: nokomis who wrote (48944)	7/7/1999 2:07:00 PM
From: Jenna	Respond to of 120523

Please still watch #11 July 15.. It surged yesterday although its pulled back, but now if YHOO does well, I'll be looking at some newer stocks in the July 19 and 20 list before the week is over. 2 of them had already popped large: #9 for the 20th and #6 for the 21.. remember these are NOT random stocks but stocks that have passed pretty stringent earnings criteria, and have been plays for 1 to as much as 5 previous quarters. Even though nothing should be picked up without technical buy signals (i.e. NEON).. and try not to hold through earnings, that is the reason I have them up so much in advance this quarter.