To: Dale Baker who wrote (574 ) 7/19/2001 2:47:10 PM From: Sir Auric Goldfinger Read Replies (1) | Respond to of 683 Or perhaps a FRAUD exposed?!?: "sad to see what was an interesting small cap become a cult war." "AremisSoft Down -2: Lehman Advises Profit Taking >AREM 2001-07-19 11:47 (New York) By Hollister H. Hovey Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--It's time to take profits on AremisSoft Corp.'s (AREM) stock, Lehman Brothers Inc. said, as the shares have climbed almost 90% since April and future earnings announcements will likely drive the shares down soon. Investors apparently took analyst Neil Herman's advice, sending shares of the software maker down as much as 14% Thursday. Herman cut his rating on the stock to market perform from strong buy Thursday, while reducing his 52-week price target 51% to $18. He does expect AremisSoft to report "roughly in line" results for its June quarter, however. "Almost every software company that reported has lowered guidance citing a weak economy," analyst Herman wrote in a research note. "We still believe in the long-term fundamentals, but the recent run-up, combined with a weakening European environment, to which the company is highly exposed, leads us to believe that this is an opportune time to take some profits." Herman worries that weakness in the U.S. economy is spreading to Europe and that the software sector will pay the price in the September quarter. "This is clearly a big issue for the software sector as a whole, but do not forget that AremiSoft generates the overwhelming bulk of its revenue from Europe," he said. "Consequently, we are concerned that a likely continually weakening Europe could create risk estimates for AremisSoft looking forward." AremisSoft is based in the U.K. Separately, Granahan Investment Management, Waltham, Mass., dumped its entire 688,200 share holding in AremisSoft during the last quarter, according to a spokeswoman from the firm. Brian Granahan, who managed the AremisSoft account, wasn't immediately available for comment. An AremisSoft spokeswoman declined to comment due to the company's earnings quiet period. The company hasn't set a date to release its second-quarter results, she said. Shares of AremiSoft were recently down $1.52, or 9.2%, to $15.03 on Nasdaq volume of 1.1 million, compared with average daily volume of 2.2 million. Earlier Thursday, the stock traded as low as $14.20. -Hollister H. Hovey, Dow Jones Newswires; 201-938-2007;