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Technology Stocks : Macromedia...making a comeback? -- Ignore unavailable to you. Want to Upgrade?

To: Rick_Barry who wrote (2633)	7/21/2000 12:01:34 PM
From: MGV	Read Replies (1) \| Respond to of 2675

There was news Rick. They reported .26 versus .20 consensus extimates and 85% annual revenue growth. The revenue number was about $1 million light in a seasonally slow Q. -- =DJ Macromedia Skids 35% Amid Soft 1Q Rev, Analyst Downgrade -- By Marcelo Prince NEW YORK (Dow Jones)--High-flying Macromedia Inc. (MACR) shares lost more than one-third of their value Friday after posting first-quarter revenue slightly below expectations and an analyst lowered his rating. U.S. Bancorp analyst Hany Nada reduced his opinion on the maker of Web design software to buy from strong buy, saying that at Thursday's closing price of $108 3/4 the stock was fully valued. Momentum traders took his advice to heart, dumping Macromedia shares Friday. The stock, which had risen 82% in the past three months, fell 38 1/2, or 35%, to 70 1/4 on volume of 5.4 million shares. Earlier it hit 63 3/4. "It's a complete overreaction," Nada said Friday. "When I downgraded the stock this morning, I had no idea this would happen." The analyst noted he had been recommending the stock since it traded in the single digits and at recent levels he felt "uncomfortable with the valuation." Nada said the company's current products, which have been on the market for some six months, are at the tail end of their upgrade cycle "so there won't be as much upside to revenue numbers" heading into a seasonally slow quarter. "There could have been a lot of momentum players in the stock and maybe they anticipate the momentum" is easing, said Aaron Scott, analyst at Advest Inc. "Maybe he's (Nada) more powerful than he knows," Scott quipped. Thursday, Macromedia posted cash earnings of 26 cents a diluted share, well ahead of last year's 7 cents and the consensus estimates of 20 cents. Revenue reached $95 million, up 85% from $51 million a year ago, but $1 million to $2 million shy of analysts' targets. "This (selling) is definitely overdone," Scott added. "Especially since there's nothing wrong with Macromedia." (MORE) DOW JONES NEWS 07-21-00 10:54 AM- - 10 54 AM EDT 07-21-00 Symbols: US;MACR Source DJ - Dow Jones