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

To: Chuzzlewit who wrote (5596)	7/28/1999 1:31:00 PM
From: Conan	Read Replies (2) \| Respond to of 6021

Chuz: I have to believe that Larson is holding back now because he wants to begin blowing past earnings and revenue expectations again in the following quarters. He is setting expectations very low so that he is assured of beating them handily. As NETA executes a few quarters of this he will be crowing about how NETA is "back" and better than ever. All this will be at the expense of failing to solve the inventory problem. He is squandering the chance to take DSO's down to reasonable levels because he would rather pump up the stock price. DSO's will stay in the high 90's in order to facilitate future upside earnings surprises. Do you really believe that bookings in Q2 were only $200M? Symantec reported revenue of $175M in the same quarter. Do we really believe that NETA is barely larger than SYMC after buying Solly, TIS, Network General, Cybermedia, Helix, Magic Solutions, PGP, and others? I am convinced that the company is sandbagging in order to set expectations very low. It will work too, unless their business has truly begun to stop growing or even contract. Perception is reality and Larson knows it better than most. Conan