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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: techanalyst1 who wrote (10411)	1/24/2002 6:33:36 PM
From: Wizard	Read Replies (1) \| Respond to of 57684

>>What's wrong with vrsn? I expected the balance sheet to be better, and it is, but their guidance is a hit to most expectations. There are a few HUGE holders of this stock and if one of them decides to punt, look out below, in the near-term. Otherwise, I view the b/s as lead indicator so since the stock got hit last quarter on a bad b/s, I was viewing a better b/s this quarter as bullish given that short-sellers are all lathered up on this one... The stock now has some valuation support with $1.5b in revenues this year and likely $1.9 to $2b in 2003. At $35, it trades at about 4x 2003 revenues for a company that is going to get operating margins to ~30%. Some investors will refuse to look at leading indicators and instead focus on last quarters issues (today's guidance reflects last quarters balance sheet) so it goes down in near-term but so it goes. Many companies have gone through these same issues over last 18 months (improving balance sheet with lowered guidance). Either you believe in the frachise or you don't. I do and view the cup as half full at this point in the economic cycle...