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Technology Stocks : PEGA - Pegasystems -- Ignore unavailable to you. Want to Upgrade?

To: Trader Dave who wrote (242)	11/7/1997 2:27:00 PM
From: Bill Harmond	Respond to of 504

I got out of the market into the rally off this morning's lows. I don't have any idea what to buy or where. Every index I follow seems to be rolling over right under its 50-day. Both Russells, the S&P 500, The Nasdaq Comp, The Dow Composite, the Software Index...you name it. The stocks I want to own are Siebel, Ciena, Advanced Fibre, Uniphase, Rambus, Altera, Yahoo, Level One, Cisco, Anchor Gaming, Texas Instruments, Checkpoint Software, Pacific Gateway, and Idec Pharmaceuticals. When and where are my questions.

To: Trader Dave who wrote (242)	11/7/1997 3:01:00 PM
From: Clam Clam	Read Replies (1) \| Respond to of 504

Note that Montgomery's 1998 earnings estimate of $.75 include an 800 basis point improvement in operating margins - from 31.4% to 39.3%... Assuming they do the 39.3% operating margin and do $65mm in revenues, that gets you about $.55 after-tax from operations. Excluding PEGA's license interest income accounting fluff but including $.05 for interest income gets you $.60...... 45x $.60 gets you a $27 stock once all the accounting is worked out.