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Technology Stocks : Vignette Corporation (VIGN) -- Ignore unavailable to you. Want to Upgrade?

To: MGV who wrote (427)	7/24/2000 12:09:21 PM
From: Hungry Investor	Read Replies (1) \| Respond to of 628

MGV, I think that a pullback is very possible. The Company has been slowly announcing good news (deals) and no real negative items have popped up, yet the stock struggles to stay above 50 for any length of time. I believe strongly in the company and its outlook, but wouldn't be surprised if the street hit its stock if they don't significantly beat earnings estimates. By this I mean bottom line EPS. As you note there are many companies posting significant top line gains, but in the end these gains are being absorbed by higher than projected operating expenses getting EPS to "in-line with expectations". How may companies have left the street with their mouths wide open when they blow out the top-line, only to show that sales and marketing costs were 125-150% of expectations resulting in a "larger than anticipated loss". The question for VIGN is just that: if they can blow the top line out of the water, can they hold the costs in check to realize the benefit, or are we just playing a game to see how high we can get the revenue line only to create massive volatility in the stock when they either meet or miss their top line estimate? I think that game is now over. I think that investors and the street in general are becoming less hypnotized by "revenues" and are seeking the comfort of EPS and cash flows - more traditional measures of a company's current condition while still looking at market opportunity and the company's share or possible share thereof. I did see MACR yesterday. I was burned on this stock 2 years ago and have never gone back - looks as if history repeats itself.