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Technology Stocks : LEGATO SYSTEMS LGTO -- Ignore unavailable to you. Want to Upgrade?

To: Box-By-The-Riviera™ who wrote (697)	1/25/2000 12:57:00 AM
From: Chuzzlewit	Read Replies (2) \| Respond to of 1138

Joel, maybe I should have said "that ain't chopped liver". I'm beginning to think that once again the analysts haven't analyzed. The earnings disappointment looks more like a change in accounting principles than anything else. I'm guessing that when all is said and done, cash flow from operations came in at roughly $.70 per share for the year. If so, the stock is selling at roughly 41 x trailing cash flow, which, for a company looking at growing 50% per annum, isn't outrageously expensive. I think the talk about "cooking" the books is pretty outrageous. Again, I urge people on this thread to focus on cash flow analysis in conjunction with earnings. It makes much more intuitive sense than earnings by themselves, and it cuts through changes in accounting principles and highlights potentially over-aggressive accounting practices. TTFN, CTC