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Technology Stocks : BEA Systems (BEAS) - Undiscovered Growth Stock -- Ignore unavailable to you. Want to Upgrade?

To: Zelix who wrote (1797)	4/11/2001 8:34:49 PM
From: JRI	Respond to of 2477

Why is operating income for BEAS so low, given the volume of sales? TIA

To: Zelix who wrote (1797)	4/11/2001 11:41:25 PM
From: sandintoes	Read Replies (1) \| Respond to of 2477

Quite frankly, I don't think Prudential holds as much clout as it once did. They down graded NVDA and it soared right after the down grade. I think many of these analyst are trying to make up for some of the down grades that they should have made last year, but were too afraid to make. Many of their calls, were "to the moon" and when the bubble burst, they all said, "HUH?" They also mention that Microsoft MIGHT be a threat at the end of the year. How can they say this, when Microsoft is out with nothing yet, and no one has seen what they have? Purely speculation on Prudentials part...someone must not have been able to get their shares of BEAS when it was rock bottom. Prudential cuts BEA to hold, economy cited 4/11/2001 4:01:00 PM NEW YORK, April 11 (Reuters) - The shares of application server maker BEA Systems Inc. (BEAS) rallied Wednesday morning, but then closed down nearly 7 percent after Prudential Securities analyst John McPeake cut his rating on the stock one step to a hold from a strong buy. BEA shares closed at $32.81, down $2.39, and off of its intra-day high of $39.42. McPeake said that, under current market conditions in which companies are cutting back their spending on information technology, he believed a 12-month stock price of between $50-$55 a share would require a price-to-earnings ratio of 84. "We don't think that's achievable in this market," McPeake wrote in a research note. While he believed BEA would meet estimates for the quarter ending April 30, revenue may somewhat deteriorate in the July quarter. McPeake said BEA, which dominates the application server market, will soon face a threat from Microsoft, which plans to release its Microsoft.NET toward the end of the year, he wrote. The analyst also said he believed BEA also is girding for a stock-based acquisition, which would further dilute its stock price. While downgrading the stock, McPeake maintained a $41 a share price target on the shares.