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Technology Stocks : Corel Corp. -- Ignore unavailable to you. Want to Upgrade?

To: Leo Mitkievicz who wrote (7889)	12/1/1999 9:00:00 PM
From: Scott Volmar	Respond to of 9798

Leo: Agreed. But ZDNet will soon get it, along with the rest of the market. (Truth is, Corel's brightly colored balloon is morphing into Steve Fawcett's metallic 'round the world model.) Recognition is just over the horizon. Even at today's close, CORL is a fabulous bargain, and still heavily undervalued. Consider this: Corel earned .15 in Q2, and .28 in Q3. I'm figuring that Q4 numbers to be released in a few weeks will exceed Q3. But, annualize .28 x 4 = $1.12 as a forward EPS. At today's close of 15.69, the forward PE ratio is a mere 14, pretty low by today's standards. This may be a crude calculation, but take a look at analyst's forward PE of SUNW for 6/30/2000 at $1.77. SUNW closed today at $130.19 placing the forward PE at about 74. Further Microsoft's PE estimate for 6/30/2000 is 1.64. MSFT closed at $93.19 today placing its PE at about 57. RHAT and VONE don't even register on the scale. So consider Corel's "oomphed-up" graphics and productivity products, plus a Linux desktop that anyone can install and use, then add the coming graphics and officeware for Linux, Corel's forward PE should be much higher. If the market reflected Corel's PE at reasonable 35, the share price would be 39.20. I think this balloon has quite a way to rise. Q4 numbers should make it clear. Further Up, Scott