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Technology Stocks : Red Hat Software Inc. (Nasdq-RHAT) -- Ignore unavailable to you. Want to Upgrade?

To: kop who wrote (877)	8/28/1999 1:31:00 PM
From: Nelson Chang	Respond to of 1794

Yes, CORL is coming out w/ a distribution version of Linux and its WordPerfect 8.0 for Linux. However, CORL derives most of its revenues from its Windows applications. And on that front it isn't even doing so well. So for the meantime its Linux applications will add little growth to its revenues. Speaking of revenues, CORL has had negative revenue growth for the last 2 years, which is probably why its P/S ratio is so low. Also, there will be much more powerful companies in terms of service when it comes to which version of Linux to use. And w/ MS Office 2000 I'm sure they are going to take a hit again. And as posted, SUNW just acquired Star which also has a line of office applications directed at Linux. So, I don't dismiss CORL, but CORL is a pretty weak Linux play. I guess if you don't have much $$$, a $5 stock looks attractive. And hey I'm sure people think, wow if RHAT goes up $5 its barely 10%, if CORL goes up $5 its a double. Anyways, this is the RHAT board, not CORL. >>>Before dismissing CORL, take a look at linux.corel.com. Corel is developing their own Linux distribution (Corel Linux) focused at ease of use. IMO, Corel's distribution could lead the Linux migration from backoffice server to desktop O/S. Release is planned for Q4 1999 with a Beta version in September. However, I think the Corel's real Linux potential is in selling desktop applications, not a free O/S. Corel's WordPerfect Office 2000 is targeted for release Q1 2000. BTW, Corel closed up over 25% today and their market cap. is currently 353M vs. RHAT's 5334M.<<<

To: kop who wrote (877)	8/28/1999 1:36:00 PM
From: Nelson Chang	Read Replies (1) \| Respond to of 1794

RHAT just got added to Cramer's "Red Hot Index." It doesn't mean squat, it's just an index of 18 stocks Cramer picked to gauge the markets crazy sentiment and how fast these stocks move which he gauges in points per hour. I think that's pretty funny. haha... For those of you who don't subsribe to it, you should. That site probably has the best stock commentaries anywhere.

To: kop who wrote (877)	8/28/1999 1:48:00 PM
From: Nelson Chang	Read Replies (1) \| Respond to of 1794

One final post for the weekend, since there's little left to discuss. Someone on here keeps saying RHAT to the 20's. Well, do you realize that RHAT at $20, would still put it at over $1 billion in market cap??? It could be argued that that is still overvalued. So if RHAT could trade at $20, why not $60, why not $80, why not $150? For someone to say that RHAT could trade at $20 which is still overvalued, they are essentially saying it has the potential to trade at higher levels. Once a stock is overvalued, valuation just goes out the door and a stock trades purely on supply/demand. So simply according to supply/demand, do you seriously think RHAT is more likely to reach $150 or $20 i ask you? "CSCO justifies valuations" - Keep this in mind, CSCO just bought Cerent, a private company which would have gone IPO, for $6.86 billion. If Cerent had gone public and had that market cap, you can bet people would be saying that it would be overvalued. But CSCO bought them for that much, and Wall St greeted it kindly. Heck CSCO probably would have had to pay an even higher premium if it waited till Cerent went public. Everyone have a good weekend!...