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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (14599)	11/10/1999 9:10:00 AM
From: jimbos	Respond to of 57584

Rande, Follow your thread but do not post here often, wanted to post this yesterday but S.I. was having their problems. I know you mentioned that fund managers will be looking for undervalued stocks shortly. One that I follow very closely due to the fact it's a local company is CPWR-Compuware. Over the last 12 months they are down about a percent, even though they have consistently acheived 40-55% earnings gains. Their in the s-p 500. The reason for the lack of price movement in my opinion is a misunderstanding of their business. Their percieved to be y2k reliant which was only 5% of their business. Their making up that work and more with their focus on e-commerce work, they have recieved a 10 year 1 billion dollat contract from the Detroit Medical Center. Their moving to downtown Detroit from the burbs, did they want tax breaks for the moves NO, they told the city/county/state that they just wanted additional contracts which one was the DMC contract. If you know how bad the city needs this move, you know their working behind the scenes to get CPWR anything they want. CPWR should be recieving a contract to straighten out Detroit's computer systems, also G.M. business. They have bought a couple of companies in the last year mostly for the workers, doubling their work force to 15,000 and are advertising all over for additional workers. In the latest quarter they recieved flack from the analysts that their accounts recievables rising, I listened to the conference call and CPWR's explnation for the increase is the fact the contracts their signing are getting larger and larger and their financing some of the purchase of their software. The business they do is with fortune 500 companies and in 20 some years of business they have never lost a nickle due to non-payment. The CEO has already the quarter is looking great and will have no problem meeting that numbers. I believe once the y2k stuff is behind us and CPWR continues on growing the stock price will take off mostly due the fact it hasn't done much in the last year with Nasdaq up 40%. They have a p.e. of around 16-17 and a stated company growth target of 30-40%. Jim

To: Rande Is who wrote (14599)	11/10/1999 9:29:00 AM
From: jimbos	Read Replies (2) \| Respond to of 57584

Oh yes a couple more points on CPWR. CPWR took a whack on the IBM announcment that mainframe sales are slowing down. CPWR charges by the mips so revenue should not be hurt. Something like 70% of the revenue is recurring from licensing fees. Where their numbers flucuate is with the number of contract workers they have on consulting projects. They have upped the number of these workers by something like 7000 employees in the last 6 months. They would not be hiring the employees if they felt they could not place them.