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Technology Stocks : Remedy Taking a hit why? -- Ignore unavailable to you. Want to Upgrade?

To: Clam Clam who wrote (356)	11/24/1997 12:52:00 PM
From: GJD	Read Replies (1) \| Respond to of 763

RMDY's earnings estimates for fiscal '97 are 0.97 and for '98 is $1.39. The growth rate for this co. seems to be coming down to the 50% area from the 80-100% area. The stock has not made any price progress to allow for the pe compression from the 80s to its current 55. Granted that it will not grow as fast as the past, it seems to be reasonably priced. A pe of 50 for 1.39 will yield a price in the high 60s. Do you believe that a more pronounced deceleation is possible and if so what are your reasons?

To: Clam Clam who wrote (356)	11/24/1997 1:02:00 PM
From: Shege Dambanza	Respond to of 763

My internal sources tell me that the party line remains that the guy's leaving for personal reasons. Apparently he wants to work in something related to health-care. Wants to give back to society, yadda yadda. I think that's credible. However, like you, I continue to believe that growth will slow down. It remains to be seen how good the new guy (from Centura) is. My sources further tell me that Remedy is going through growing pains. It is a very young company (low average age), and the structure and organization and discipline that comes with increasing sales is causing significant turnover in the ranks. OTOH, this is quite common in the lifecycle of high-growth companies (staff turnover at IPO, $100-$300MM sales, and at $1B sales). On a different matter, check your e-mail later today. I have some news/info that may be of some interest to you and Steve F and TD.

To: Clam Clam who wrote (356)	11/24/1997 10:27:00 PM
From: Rick Thomas	Read Replies (1) \| Respond to of 763

I agree that the days of 100% revenue growth yr/yr are probably gone, but then so are the days of 100 p/e ratios. When you say growth is going to slow, are you thinking demand is going to slow, or Remedy's share is going to shrink, and if so, to whom? Also, I read the press release as showing only one VP leaving, not two. And he is leaving the Remedy sales force, as well as the VARs, integrators, etc. are all looking strong. While all things change, for now I will stay with companies that can grow earings and revenues at RMDYs rate.