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Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: Sal D who wrote (8092)	5/21/2005 12:18:21 PM
From: Ken W	Read Replies (1) \| Respond to of 23958

Sal QSFT: Wow, you can't get much more solid than this one. Rev's for the past Q, reported on the 10th, increased by 25% to 103mm with only a 12% increase in costs resulting in a net of, after all other charges of 14% in margins. Outstanding. Cash generated totaled 27mm bringing cash and cash eqiv. to over 200mm with no debt. Again, outstanding. Their recent aquire of Aleata (sp) was a plus as it generated cash right off the bat, while they divested Vista, getting rid of an underperforming segment. Great quarter...that's the cheerleading part, now for the BUT part. Starting Jan. 06 they are going to start expensing options that will reduce margins by a considerable amount at a bad time for software companies. Of couse they don't know how much of a hit, but it will be a hit. The trailing PE is presently 23 with a foward PE set at 18 (I'm assuming some analyst has put this on) To my way of thinking that means they have priced in most of next years value. Until this past Q they were trading at about 2x cash, 3x book value and nearly 2 times sales. Again, most of the value has been priced in. Back to the plus side again. With all the cash, no debt and world wide sales/service/maintance in place this company is hugely attractive as a buyout for a much larger fish. One the TA side: stockcharts.com[m,a]daolyyay[pb50!b200][vc60][iUb14!Lp14,3,3]&pref=G These are the kind of charts I hate. The 50 is still under the 200 even though the 50 has been breached the stock is too overbought to maintain the move toward the 200 as it is too far away. Being a buyer at the horizontal support line nearer to 12 may provide some nice trades while the chart repairs itself. On the longer term chart: stockcharts.com[m,a]waolyyay[pb50!b200][vc60][iUb14!Lp14,3,3]&pref=G Intresting..there is a little overhead gap that may fill at about 13.80, but that is also a resistance spot near 14. Again, the 50 is under the 200, while oversold and turned up this could take 4 to 6 months to play out, by then the stock will be overbought again and ready for some profit taking... Best case sernario IMO, buy it on weaknes in the low/mid 12's sell the trading shares low to mid 13's and hold the cores just in case a larger company wants them at a pretty nice discount. With all the cash, the buyer is getting an automatic discount against what ever they pay for the company. Perhaps Sergio will find more...He is much better at boilerplate than I. LOL Ken

To: Sal D who wrote (8092)	5/21/2005 2:18:04 PM
From: Sergio H	Read Replies (3) \| Respond to of 23958

QSFT Sal, Ken did a nice quick analyses, but he jumped to the conclusion. Let's break it down and see how he got there. where he might have collected the information, etc. First step for me on fundamentals is to do a quick check through the info available at most web stock sites. Let's use Yahoo, since its the most popular, its ease of use and the price is right. Let's do a quick check on the numbers. Click on KEY STATISTICS. Let's go over these numbers, but before we do, do you know what all of the ratios mean?