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Technology Stocks : i2 Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Adam Nash who wrote (1413)	10/26/1999 2:40:00 PM
From: Wizard	Read Replies (1) \| Respond to of 2339

Let me offer some words to help you deal with your situation. Some fresh perspective may help clear your mind. If you have a huge position, you should probably take some off the table if its making you nervous. Nearly all tech stocks can correct abruptly and significantly in a short amount of time. That said, I wouldn't worry about ITWO at a core position size. You have to understand that only core owners wanted to own this stock in July because the really growthy buyside funds (the incremental buyer) hate risk and ITWO's Q3 was a very risky time. Earnings estimates had been revised down for multiple quarters in a row and the transition to ebusiness from supply chain was at its zenith. As the incremental owner sold, the stock bottomed and then ITWO based and had a great Q3 with very good guidance. This stands in stark contrast to the 'tone' after Q2. Because the tone of business is so much better now, the incremental buyer will remain confident and continue to accumulate ITWO as the risk of a Q4 earnings miss is low. The stock is now free to run towards a multiple like Siebel's, or higher because of ebiz software franchises are getting higher multiples (witness ARBA, VIGN, BVSN etc...). Don't trade tech stocks on their valuation multiples, you will get faked out 9 times out of 10 and its not what the incremental buyer cares about. ITWO's biz is in the first inning of acceleration related to ebiz. Let it go. Ride out any volatility, it will be relatively short-lived.