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Technology Stocks : Documentum (DCTM) Software -- Ignore unavailable to you. Want to Upgrade?

To: Asymmetric who wrote (543)	9/25/1999 7:26:00 PM
From: Michael Watkins	Read Replies (1) \| Respond to of 600

Peter, Thanks for the kinds words. Regarding the sale - I don't want to take anything away from the sales team - a big deal is a big deal. On the other hand, it is a single big deal with I suspect little upside from here. I don't get too excited about deal press releases because, after all, it is a sales responsibility to bring in revenue. If a deal carries with it special characteristics - a radical new approach to a new market, opening up new opportunity that didn't exist previously - that's a different matter (although then i'd be wondering about the lengthy sales cycle). Documentum's approach was/is? different than some of the other vendors - get into an area, build value added applications for that area using the company's technology, dominate that area. Move on and find next area. Great strategy. But may not have the growth in it that justifies high price multiples. Compare that to OTEX who are simply trying to flog lots of seats. Perhaps a growth business, although I think they run the serious risk of being in Lotus and MSFT cross hairs for doing so. Their recent acquisitions seem to suggest that the value add / complete information management capability - approach is what is needed. Perhaps their growth will slow. Rambling a bit but lack of sleep does that to me! Bottom line, the deal was nice. I hear rumours that they had closed some big biz, not sure if this was the only one. If it means they will surprise the street - great. If it means they will come in line and/or not be able to show how the next quarters will be met - well, it will be "sell the news" time.