Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Manugistics, Inc. (MANU) -- Ignore unavailable to you. Want to Upgrade?

To: bob zagorin who wrote (1558)	12/19/2000 12:31:09 PM
From: LaVerne E. Olney	Respond to of 1670

Recent price weakness may be related to current issue of BusinessWeek: It's Boom Time for the Shorts Short sellers are ahead for the first time since '94 Another way to evaluate short potential from p-e's is to judge whether a company's ratio is justified by how its products stack up against those of rivals. Steve Worthington, a portfolio manager at Barbary Coast Capital Management, a San Francisco hedge fund, thinks programs offered by Manugistics (MANU), a developer of software for supply-chain management, don't measure up to the competition's. ''I2 Technologies is clearly the leader in this field,'' he says. Yet Manugistics' stock, now around 100, is trading at a price-earnings ratio of 478. By contrast, Wall Street expects I2's earnings to grow 30% faster than Manugistics'--yet its stock, at 57, has a p-e ratio of 249. His conclusion: Manugistics shares are in for a 50% correction. The price quickly turned around when it was announced that MANU CEO would be on CNBC tomorrow morning (after reporting earnings tonight).