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

To: steve olivier who wrote (2757)	12/28/1999 6:28:00 PM
From: steve olivier	Read Replies (1) \| Respond to of 2920

Here is some good news from RGR Financial (remember that other firm who picked up coverage on XICO), which should get us on a few more radar screens. Read the last paragraph. Also, note the time - after the close today. Tyler Technologies on upward path RGR Financial says company is one of four top picks in 2000 By Lisa Sanders, CBS MarketWatch Last Update: 4:19 PM ET Dec 28, 1999 NewsWatch NEW YORK (CBS.MW) -- Shares of Tyler Technologies continued on an upward path Tuesday on news it will take a stake in DemandStar.com. RGR Financial Corp. said it expects the company to take a $5.6 million interest in the online vendor service and called it a top pick for 2000. Today on CBS MarketWatch Dow leaves Nasdaq behind Net Stocks: B2B takes the day Consumers in jolly mood Private investors to buy Jostens StockWatch: The January effect, Part II More top stories... CBS MarketWatch Columns Updated: 12/28/1999 5:31:08 PM ET The purchase would allow Dallas-based Tyler to raise capital "in a meaningful and material way," Joseph DiLustro, an analyst who does investment research for RGR, told CBS.Marketwatch.com. Currently, Dallas-based Tyler (TYL: news, msgs) owns a restricted 32 percent interest in HTE, the parent company of DemandStar.com. Under the plan, Tyler would purchase an unrestricted 29.2 percent interest in DemandStar.com, giving each HTE shareholder for each share owned one right to purchase one share of DemandStar.com for $1. HTE provides software services to local governments. HTE's goal is "spin off the company and unlock value to its shareholders," DiLustro said. A total of 19.2 million rights will be offered under the S-1 filed by HTE with the Securities and Exchange Commission last week. The filing also included the name change to DemandStar.com from Information on Demand. "We have had our investment in HTE since August, subsequent to its decision to spin off DemandStar," Brian Miller, Tyler vice president of finance, told CBS.Marketwatch.com. "(The rights offering) will enable us to participate in a what amounts to an IPO of DemandStar and still maintain our strategic investment in HTE." Tyler develops and sells software and provides information management outsourcing services to county and local governments. "This would give [Tyler] a liquid asset," DiLustro said. "It would be foolhardy for them to pass it up. If they buy the stock for $1, let's assume that the stock is trading at $5 or $6 a share. The difference is their profit." Shares of Tyler were trading at 4 3/4 Tuesday , up 31 percent, or 1 1/8. Currently, Tyler's investment in HTE amounts to $17 million. The rights offering will allow "Tyler to take some of their investment in HTE off the table, without affecting its primary interest in HTE," DiLustro wrote in an analyst note. See press release. Tyler would also be able to take as much as $40 million from the rights offering to offset some capital losses from former businesses, DiLustro said. RGR Financial reiterated its "strong buy" rating on Tyler with a 12-month price objective of $21. In addition to Tyler, RGR said its top picks for 2000 are Comdisco (CDO: news, msgs), a computer leasing company, which owns DSL-provider Prism and operates a venture fund based on Internet stocks; Primus Telecommunications (PRTL: news, msgs), a global telecommunications provider emphasizing Internet and data; and Xicor (XICO: news, msgs), a semiconductor manufacturer of non-volatile chips.