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Strategies & Market Trends : Market Gems-Trading Strong Earnings Growth and Momentum -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (319)	1/2/2001 10:02:40 AM
From: Jenna	Read Replies (1) \| Respond to of 6445

8> BEAS BEA Systems Price = 67 5/16 As web developers and systems integrators are missing numbers, showing declining revenue numbers a BEAS depends on web developers and SI's to integrate Web Logic. BEAS is also overvalued here. Looking for a bear flag rally and than a possible short play. BEAS trades at a Premium PE Multiple of 306.0 time earnings, vs. the 38.6 times earnings which is the average multiple at which the Software & Services SubIndustry is priced. 65 puts for January at 5 3/8 or if BEAS moves up a bit the 70 puts. Wait for BEAS to probably test 69.34 (rising and topple from there or before. Support is at 56 1/2, the 200 day moving average. With the following profitability grades for BEAS as seen as well below the average for its sector, its unlikely to maintain its price level which is considerably higher than the average price multiple for this sector. ROS (Return on Sales) : (3.6%) Divisional Margins : (0.5%) Cash Flow Margins : 7.9% ROA (Return on Assets) : (1.3%) ROE (Return on Equity) : (3.7%)