Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (5557)	7/22/1999 8:40:00 PM
From: Y-fall	Read Replies (1) \| Respond to of 6021

Too bad for you.... This company will indeed be well equipped to make a run in the next 6 months including a possible takeover. With McAfee.com spinning soon there will also be more revenue in the channel. Holding this baby for a long time....

To: Chuzzlewit who wrote (5557)	7/22/1999 11:02:00 PM
From: mrknowitall	Respond to of 6021

Chuzz . . . good riddance to bad rubbish on my part as well. The personal enrichment on the part of Larson and his closest cronies at the expense of stockholders is, IMO, an all-too-common trend among those who play the buy-shred-stuff game in the software arena. Far too many of the so-called "analysts" helped out in this scam, and hopefully, their senior management have taken them to task for letting an egomaniac like Larson and his close circle of sycophants drill them for millions in NETA losses that they have to cover with other investments. For those who aren't diversified, I offer Mr. K's latest law of investing: "Know thy CEO and beware the minions that labor at his behest alone, for they are likely to smite thee on behalf of their own interests, and thee might be sorely afflicted." Mr. K.

To: Chuzzlewit who wrote (5557)	7/23/1999 12:05:00 AM
From: AlienTech	Read Replies (1) \| Respond to of 6021

Chuzzlewit Would really hate to see you leave. I just cant belive the naivette of the number of newbies that I see around. I suppose it is the same mentality of one knowing more than anyone else and that if the other guy gets screwed so what, You aint him and it cant happen to you. I still have a small position, just expecting someone to take it off my hands and give me something worthwhile instead. Oh i belive the same things you do but today was exceptional. Hopefully I wont have to smell the stinker for much longer. Only good thing in ALL this is Joanna got her house! And just in time too. Oh take a look at INIT and ADBL Would have said CYBS too but it already ran.

To: Chuzzlewit who wrote (5557)	7/23/1999 12:47:00 PM
From: Conan	Read Replies (1) \| Respond to of 6021

Chuz: Below is a quote from the Steet.com. I think they share my opinion about the accounting at NETA and my disappointment with the lack of change in DSO's. How is it that 90-100 days is an improvement over 107? I think what they will end up doing is pumping up the revenue line in the next few quarters to substantiate the "smooth sailing" prediction. This can be done quite easily but at the cost of failing to solve the inventory problem. Of course, another way to view this is to believe that Larson and friends are actually quite bullish on their prospects. Perhaps they really believe that they have made the transition to an enterprise company and the high DSO's are a normal consequence of longer selling cycles. In that case they are right to keep the DSO's up because the market generally does not reward companies for being conservative with the numbers. 'Smooth Sailing' at Network Associates Is Not Likely By Adam Lashinsky Silicon Valley Columnist Shares of Network Associates (Nasdaq:NETA - news) surged 2, or 12%, to 19 1/16 Thursday after the company told investors Wednesday it expected "smooth sailing" for the rest of the year. The enterprise software company, best known for its McAfee antivirus software, until earlier this year was on track to have $1 billion in annual sales. Then the real world of long sales cycles and millennium-bug concerns caught up with Network Associates. Its second-quarter sales were all of $25 million, making it a $100-million company. But while sales shrunk at Network Associates, inventory didn't slim down commensurately. The company reported about $200 million in receivables, meaning it has shipped to wholesalers roughly two years of merchandise for which it hasn't collected. In accountant talk, this is called days sales outstanding, or DSOs, of roughly 740 days. Anything over 90 to 100 days, or three months, is considered more inventory than one company can prudently handle. Christopher Shilakes, software analyst with Merrill Lynch, notes that the DSO figure for the quarter is meaningless because Network Associates basically stopped shipping to its distribution channel. Network Associates plans to reduce DSOs to 100 days in the third quarter and below that in the fourth quarter, he notes. Still, says Shilakes, "we do not believe it is back to business as usual for" Network Associates. He rates the stock a neutral, displaying the wait-and-see approach Wall Street tends to take on this "broken" stock for the foreseeable future.