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

To: Nadine Carroll who wrote (2071)	8/15/2001 4:16:00 PM
From: Tensane 1	Read Replies (1) \| Respond to of 2477

Nadine, I have to agree with you, great company, just a little overpriced in this market. Out 5 years, this could be a tremendous company, one that rivals MSFT from a growth rate standpoint. They have a great balance sheet(although I need to look into the convertable debentures). Great gross margins and increasing, in a growing market place that they are the dominant player. I would like to know where you got the $12 figure though. If you take that price and assume that they hit their numbers the next 2 quarters, you would have a net of around .40/share for the year. This would give you a TTM PE of 30. With a growth of 50% or better per year, this is compelling, assuming continued growth. Problem is, I don't think that you can use PE's to guide you on this stock. This company is generating a lot of cash, and has close to 1 billion in cash on hand, that could be used to buy business. I think $12 would be a great entry point, but I am just interested as to how to evaluate a company like this in this type of business environment.