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To: Danny who wrote (102592)	5/1/2000 9:55:00 PM
From: Sam Citron	Read Replies (2) \| Respond to of 164684

Danny, I love Yahoo. To me there is no question that it is the most valuable set of "free" tools on the net. They are undoubtedly the class act of the entire net. And they are consistently profitable and will grow and grow. The reason I don't own Yahoo is simply that I like to buy excellent companies on bad news, when they stumble, and Yahoo has had a perfect record. Hence its P/S of 100 and its P/E of 573, even though it is 50% off its high. It's just a little rich for my blood. I appreciate the info and did not know that EDA industry is only expected to grow 7-8% this year. This seems especially anemic to me in light of the strong growth dynamics of the semiconductor equipment sector. Perhaps you can explain this anomoly. I agree that looking for value is usually futile. Value stocks are generally cheap for good reason. However, I have done extremely well with certain value techs: Fusion Systems which was bought by Eaton 2 yrs ago. And more recently Viasoft, which was just acquired by Allen Systems. Of course, I've had my share of lemons as well, but if your name is citron, that comes with the territory. ;-) Sam

To: Danny who wrote (102592)	5/2/2000 8:55:00 AM
From: Peter Bernhardt	Read Replies (2) \| Respond to of 164684

I would avoid EDA sector in general at this moment. Last year the entire industry only grew a mere 11% in revenue and it forecasts a 7-8% growth for this year. I'm not sure where you got this figure, but there are some excellent opportunities in this sector right now. You may have mentioned this earlier in this thread, but Mentor (MENT) just announced extraordinary earnings. IKOS Systems (IKOS) is my particular favorite. It's trading at a significant discount to its growth rate, has no debt, excellent cash flow, and 78% gross margins. They had their problems a couple of years ago, but they've been on an unabated growth track for the last 18 mos -- showing accelerating growth in both revenue and earnings. They've cracked a market no one gave them a chance of breaking (emulation) and look very good against competition like Quickturn (acquired not long ago by Cadence). Problem with IKOS is that it is covered by only one analyst and has limited institutional sponsorship. For those with patience, this is the best bet in the sector (despite Mentor's recent report). FWIW, I've never liked AVNT. Too much controversy. Definitely the bad boy of the group (although Cadence is no better, but seems to fair better by virtue of its size). - Peter B