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

To: Shege Dambanza who wrote (411)	12/23/1997 10:41:00 PM
From: Mo Chips	Read Replies (1) \| Respond to of 763

Remedy Corp. (Nasdaq: RMDY) was dumped for $11 5/16 to $21 9/16 after influential Goldman Sachs analyst Rick Sherlund downgraded the company on concerns that the acquisition of Remedy competitor Software Artistry (Nasdaq: SWRT) by IBM's (NYSE: IBM) Tivoli Systems unit would hurt sales. IBM had previously had an informal agreement with Remedy to refer customers who wanted helpdesk software to that company. As the agreement was informal, Remedy does not know how badly this could hurt its sales, but in a market with no tolerance for uncertainty this was enough to scrunch the shares. IBM, the largest software company in the world (Microsoft is only the largest separately traded software company), has an awful lot of clout with its customers. Sherlund reduced 1997 EPS estimates to $0.90 from $0.97 and 1998 estimates to $1.25 from $1.42. And I'm sure this will end in a lawsuit. Mo