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Technology Stocks : RATIONAL SOFTWARE- BUY OR HOLD -- Ignore unavailable to you. Want to Upgrade?

To: dustydent who wrote (3078)	11/29/2000 9:53:32 PM
From: Randy Ellingson	Read Replies (1) \| Respond to of 3115

All I can say is that this stock is as capable of irrational sell-offs as any other. We know pretty well that there are many big shareholders who hate the uncertainty of Rational investing cash into a completely new approach -- they see the risk and ignore the potential reward. Based on my past experience with this stock, my feeling is that this is an outstanding opportunity to buy RATL. That, unfortunately, says nothing about the near-term future share price, which actually nobody can reasonably predict (i.e., maybe it will sell for twenty or ten -- who really knows for certain what the future holds). I see no negative developments with respect to their current and future business, based on public material info. IMO, all of the price action can be explained by general market concern over a slowing (tech) economy. Impossible to say now whether or not that is warranted. RATL is trading at what may turn out to be about a 30 forward PE (FY2002). I need to learn how to quantify cash flow (do you know?), but I expect their numbers are even better in those terms. Randy