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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: kendall harmon who wrote (74743)	12/9/1999 9:07:00 AM
From: Lane Hall-Witt	Respond to of 120523

Keep an eye on PVSW as a potential intermediate-term trade. Near-term catalyst is that the company is scheduled to release its Tango 2000 Application Server for Linux later this month (by end of December quarter). Tango is an ALLR Cold Fusion competitor and is expected to beat CF's Version 4.5 to market. (CF 4.5 will include Linux support; it is still in beta.) Here's an October PR that references the forthcoming release of Tango for Linux: biz.yahoo.com And here's the PVSW Tango product page (Linux mentioned at the bottom): pervasive.com PVSW also has entered the information-appliance market with its Pervasive.SQL 2000 database product, which now includes functionality for embedded systems, mobile devices, and smart cards -- all markets that will be immense. PVSW database products have historically been extremely well positioned in healthcare, accounting, financial services, and real estate. Obviously, these are all markets with tremendous potential to utilize small-footprint database applications for information appliances. At this point, PVSW is a high-risk, speculative play. The company got crushed after its last earnings announcement because it said, in its conference call, that it will be investing $13 million in its new "Applications Everywhere" business strategy. This represents a shift in business focus away from the client-server database business (which rapidly is becoming a mature market, with slowing growth) and toward the Web-application and information-appliance business. This investment will fund new marketing initiatives and Internet product development. The size of these investments caught the Street by surprise, and the analyst community responded with its typical short-view hysteria. (These no doubt are the same analysts who enthusiastically praise ALLR -- rightly! -- for its intensive spending on marketing and sales. PVSW was slaughtered for making this business investment because it is not a 1999 Internet IPO.) For a very helpful overview of the Applications Everywhere strategy, see this November PR: biz.yahoo.com PVSW market cap currently is $200 million (revenues last quarter $16.7 million, a 42 percent increase over the previous year; net income last quarter $1.5 million, a 58 percent increase over the previous year). By contrast, ALLR's market cap is $2.278 billion, and LBRT's market cap is $6.722 billion. PVSW Yahoo! Profile: biz.yahoo.com