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

To: mappingworld who wrote (7912)	12/7/1999 7:17:00 PM
From: Kip518	Read Replies (1) \| Respond to of 9798

Corel stock basks in spillover of Linux enthusiasm (In U.S. dollars unless indicated) By Susan Taylor OTTAWA, Dec 7 (Reuters) - Shares of Canadian software developer Corel Corp. soared nearly 30 percent on Tuesday, buoyed by enthusiasm for an initial stock issue by a U.S. Linux-related company. Shares in the Ottawa-based Corel, which recently launched a Linux operating system for desktop computers, gained C$7.60 on the Toronto Stock Exchange to end the session at C$33.60. The stock's year high is C$40.95 and the low is C$3.05. it has been gaining recently on Linux developments. On Nasdaq, Corel added 5-1/16 to close at 22-11/16, moving closer to this year's high of 27-12/16 and further from the $2 low. On Tuesday, VA Linux Systems Inc., a California-based provider of Linux-based systems and software, raised the projected price of its initial public offering to $21-$23 per share from $11-$13 per share. The firm expects to net an estimated $88.6 million from the sale of 4.4 million shares, which will trade on the Nasdaq under the symbol , an amended prospectus said. "It's expected to be just one of the hottest things in history," said Duncan Stewart, fund manager at Tera Capital Corp. in Toronto. Enthusiasm over the listing is buoying all Linux plays, he said. Linux is an open source operating system with an estimated 10 million-12 million users, which is seen as a competitor to the dominant Windows system from Microsoft Corp. Andover.Net, of Massachusetts, a network of Web sites with content and commerce aimed at the Linux and open source community, is also planning an initial public offering (IPO) this week. Corel hosted a tele-conference on the market opportunity for Web software sales and delivery on Tuesday, but it did not make any announcements. "We're just assuming (the stock rise) is still Linux and people's faith in Corel," said Corel spokeswoman Stefania Allevato. "People understand that we've got a good strategy for Linux and they're happy with what we're showing right now." Corel expects to release a Linux version of its WordPerfect Office 2000 in the first quarter and a Linux version of its CorelDRAW9 software next summer. Despite investor enthusiasm, analysts are taking a more cautious approach to Corel's Linux opportunity. Merrill Lynch upgraded in September its long-term recommendation for Corel to "accumulate" form "neutral", though the short-term rating remains "neutral". Scotia Capital has a "reduce" on the stock, rating the risk "above market". To win back analysts Corel needs to show sales growth, said Jean W. Orr, analyst at Bluestone Capital in New York. "They really haven't been showing much growth at all and here I'm thinking on the revenue line," she said. "What growth we've seen on the bottom line has been cutting expenses and I think the investment community views that as limited value." ($1=$1.48 Canadian)