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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: rocklobster who wrote (117783)	12/1/2000 12:12:43 PM
From: Lane Hall-Witt	Respond to of 120523

rock -- BVSN: The surprising thing about the CSFB downgrade is that they cited the release of the Java-based product as a negative. This has been widely anticipated (favorably) for quite some time. I haven't read the note, so I don't know exactly what their concern is. On one hand, they may have a short-term concern related to the delay in sales that often accompanies product transitions: companies stop buying the existing product because they're waiting to evaluate the new release. On the other hand, and more seriously, maybe they have concerns about the quality of the new release -- which obviously would be a longer-term problem that cuts right to the heart of BVSN's business prospects. Personally, I like BVSN; I think it has an underappreciated story and a history of solid execution. They have exciting business opportunities in the pipeline, with the Java-based release on the way and their e-marketplace product taking hold. They have a substantial installed user base and a lot of potential to leverage these existing customers by selling them new products and services. In this market, it's hard to get excited about on a numbers basis: P/E/G of about 2, which is high in a present context of valuation compression, but not bad compared to many of its peers (ITWO, VIGN). I'm tempted to pick some up to hold for awhile, with a stop somewhere around the 52-week low that it hit on its previous downcycle.