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Technology Stocks : Vantive Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Scott H. Roberts who wrote (1425)	12/19/1997 4:30:00 PM
From: Clam Clam	Read Replies (1) \| Respond to of 3033

Hey, all right! Another number crucher to do some of the legwork. Now Vantive management doesn't even need to pay DMG (their i-bankers) and cost us shareholders some cash (which technically translates to earnings through interest income). Importantly, PSFT would not impair its growth rate by acquiring VNTV as PSFT is projected to grow revenues 49% in 1998 on a standalone basis where VNTV is expected to grow 61% on its own. PSFT probably has an internal plan to grow above the 49% rate that Chuck Phillips expects in 1998 so it isn't a completely fair analysis but PSFT could probably increase VNTV's growth rate through some sales synergies and it appears the deal very much works on a financial basis. '98/'97 Revenues: PSFT Standalone 49% VNTV Standalone 61% PSFT/VNTV Combined 51% Gain by Doing Acquisition +2% '98/'97 EPS Growth if done at $35: PSFT Standalone 40% VNTV Standalone 49% PSFT/VNTV Combined 41% Gain by Doing Acquisition +1% $35 is a 30% premium to today's close and represents a respectable 44x 1998 EPS. BTW, VNTV's chart showed great improvement today. It looks like it is on the verge of a breakout. Volume wasn't real heavy so we will have to hope for some follow-through on Monday. William H, get in there and buy some and get that volume surging.