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

To: jbkelle who wrote (3096)	4/3/2001 10:31:00 PM
From: Randy Ellingson	Read Replies (1) \| Respond to of 3115

jbk, I hereby vow that I will never again overestimate the conclusions the collective market will arrive at regarding how little a company may be worth facing an economic slowdown :-). I am somewhat stunned by the discounting on this stock (and others, I'm sure). Rational announces a slowdown which they expect to reduce the coming year's earnings to $0.50 - $0.60, and a forecast for about 15% revenue growth for the coming year. The market last traded the shares at a current PE of <18, and a forward PE of about 22. I guess until we see some signs of real growth in their business, we have to assume this is "fair". Randy