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Technology Stocks : CLRS Company Status/Future -- Ignore unavailable to you. Want to Upgrade?

To: Tom Stocks who wrote (10)	7/20/1999 5:39:00 PM
From: HeyRainier	Read Replies (1) \| Respond to of 128

Clarus Corporation Reports Record E-Commerce Revenues in Second Quarter biz.yahoo.com According to First Call, estimates were for a loss of $0.17 per share. Earnings came in $0.02 above expectations. Just as a rough calculation, I took a look at the $2.508 million earned from e-commerce products this quarter, and grew it sequentially based on a 35% growth rate. By the end of four quarters, we get $16.635 million in sales from e-commerce. At 10.989 million shares outstanding, that gets us a forward price/sales ratio of 1.51, assuming a zero valuation for the company's ERP business. (The BancBoston Robertson Stephens analyst gave the ERP biz a 0.5 x sales valuation, but let's work that down to zero for fun.) I believe that same analyst called for a base multiple of 8 times forward sales for e-commerce. Using that value, we get a price target of roughly $12.00. I believe Ariba (ARBA) trades at 132 times TTM sales (based on yesterday's close), and Commerce One trades at 46 times TTM sales. Clarus trades at about 2 times. It shows how much of a difference there is in valuation among the above companies. Given the number of e-commerce customers growing to 28, I wonder how much longer this stock can continue to trade at a significant discount to Ariba (about 38 customers?) or Commerce One (around 25 customers?). We'll see. Also, does anybody know if a conference call is scheduled soon? I tried calling the company, but it may be after-hours there as well. --Rainier