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

To: T-Lo Greens who wrote (1190)	2/4/2000 11:43:00 PM
From: MikeyT	Read Replies (1) \| Respond to of 1492

BMCS value should be calculated based on what IBM software division brings in. I believe IBM software margins are quite high. Between the different processor group pricing, and monthly license charges I would guess it is at least easily 30-50% gross profit margin. If BMCS is absorb into IBM, there is one less competitor for IBM to worry about. Takeover value? I would think anything less than $70 would be a sin. With IBM stock up high, I'll bet if it happens it will be a stock swap. Mikey

To: T-Lo Greens who wrote (1190)	2/14/2000 10:38:00 PM
From: john dodson	Read Replies (1) \| Respond to of 1492

IBM did buy Sequent for about $18. I remember when IBM bought Lotus some years back. Lotus' stock was trading in the mid $60's, then hit a rough patch and dropped to $35 or so. Very soon thereafter IBM announced a buyout at $60 if memory serves. Well, Lotus somehow got big blue to finally anty up $5 more for a bid of $65 before the deal was done, again if memory serves. I'm having a hard time seeing the likelihood of this whole thing. Even at $40 something, BMCS already has a market cap in excess of $10 Billion. Even a $65 offer equates to over $15 Billion -- a hefty price to pay. And, no offense, but BMCS ain't no Lotus, or at least what it was IBM bought 'em. -John