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Strategies & Market Trends : Paint The Table -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (14576)	2/13/2002 6:15:52 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 23786

Beas is fundamentally troublesome. TIBX and WEBM ok - maybe the street is afraid of the impending threat of a VERT recovery... LOL L

To: Jorj X Mckie who wrote (14576)	2/13/2002 7:04:31 PM
From: Venkie	Respond to of 23786

Analysts: Enterprise Software Stocks Warming Up Mon Feb 11, 1:36 PM ET Lou Hirsh, www.CRMDaily.com With the economy likely to remain in recovery mode for the rest of 2002 and possibly into next year, analysts specializing in CRM-related stocks do not foresee the kind of red-hot growth enjoyed by some software and technology companies in the late 1990s. But current moves by corporations to boost information technology spending -- aimed at making operations more competitive and cost-effective -- should translate into significant revenue growth for companies that sell CRM and enterprise management software, with a corresponding boost in their stock prices. Jon Ekoniak, a senior research analyst for US Bancorp Piper Jaffray, told CRMDaily.com he foresees particularly strong growth prospects for companies involved in CRM analytics. Based on increasing demand for analytical software in a number of industries, the sector could see revenue growth of 30 percent to 35 percent in the next two to three years, Ekoniak said. In that category, the analyst is bullish on the prospects of Business Objects (Nasdaq: BOBJ - news), Cognos (Nasdaq: COGN - news) and Informatica (Nasdaq: INFA - news). Ekoniak said another analytics company that looks strong for the near term is privately held SAS Institute. Great Communicators The next most active group, according to Ekoniak, will be those companies dealing with software that eases direct interaction and communication with customers. He singled out Siebel Systems (Nasdaq: SEBL - news), PeopleSoft (Nasdaq: PSFT - news) and SAP (NYSE: SAP - news) for growth in that category. Ekoniak said this IT sector could see up to 25 percent growth in revenues, possibly beyond the next three years. "We're looking at a few years of good solid growth in this area," he said. The analyst believes that companies specializing in enterprise resource management (ERP) will likely see 15 percent to 20 percent growth in the next couple of years because the sector is more mature than others. Most new ERP purchases will involve companies looking to update their Web architecture to complement existing accounting, manufacturing and human resources systems. That should spell good news for companies such as SAP, Oracle (Nasdaq: ORCL - news) and PeopleSoft, Ekoniak said. ERP in the Pipeline Analysts at Lehman Brothers also are positive on IT software vendors. In a recent research report, Lehman analyst Neil Herman said companies looking to boost return on investment and cut expenses are increasing their spending on enterprise systems. "Ahead of the quarters to be reported, we favor PeopleSoft and Veritas (Nasdaq: VRTS - news)," Herman said. "We also believe that BEA Systems (Nasdaq: BEAS - news) is very well positioned. We believe that business and pipelines are picking up at all three of these companies." Herman noted that the focus among IT purchasers appears to be on large vendors that have established themselves as leaders in their segments. "We believe that ERP is leading the charge," Herman said. 'Compelling' Case The Lehman report cited a "quite compelling" case for an improving climate among larger companies dealing in IT software, with companies becoming "cautiously optimistic" as balance sheets show significant improvements over the past 12 months. "Despite our view of [an] anemic fourth quarter budget flush, we believe most of the higher quality software companies made Q4 numbers and that pipelines have appreciably improved in the early part of the first quarter," the report said. "We believe that these are the first signals of a long, gentle, sustained improvement of fundamentals in the software sector," Herman noted. "Although senior level execs of software companies are unlikely to try and call a turnaround at this early stage, if we are right, by the time it is apparent, software stocks would likely have had a substantial run." Company stocks listed as a strong buy in the Lehman report include Advent Software (Nasdaq: ADVS - news), BEA Systems, Click Commerce (Nasdaq: CKCM - news), Embarcadero Technologies (Nasdaq: EMBT - news), Lawson Software (Nasdaq: LWSN - news), Mercury Interactive (Nasdaq: MERQ - news), Micromuse Inc. (Nasdaq: MUSE - news), PeopleSoft, SAP and Veritas. Supply-Chain Benefits US Bancorp's Ekoniak said that although his research does not include supply-chain firms, he expects that sector also could see revenue growth of 20 percent in the near term, led by companies such as I2 Technologies (Nasdaq: ITWO - news), Manugistics (Nasdaq: MANU - news) and SAP. In a difficult economy, companies are primarily interested in increasing productivity and making more effective use of personnel and data. Ekoniak said this bodes well for CRM and enterprise software companies, especially those with existing installed bases. "The outlook is very positive for these companies," Ekoniak said. "Software has become an integral part of the operations of most businesses, and that's going to remain true in this environment."