Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : SSA (SSAX) BPCS/Client Server -- Ignore unavailable to you. Want to Upgrade?

To: J Walter Jacobs who wrote (395)	1/5/1998 6:53:00 PM
From: MAURICE J. SADOWSKY	Read Replies (1) \| Respond to of 915

Talked with Inv. Relations today--boy the new replacement doesn't know very much!! Used to deal with Margo Wentes about a year and a half ago--she was pretty much on top things--waiting for Joe Skadra to answer my questions as follows: 1. Status of BPCS 7.0--Is it in Beta testing or still in research and development--Possible release date? Value Line stated it was scheduled for late 1997--Inv. Relations didn't even know it was in the works!! 2. Y2K software--is it BPCS specific or generic (that is will it scan other programs other than BPCS). I suspect it is BPCS specific--all of the early programs before BPCS 6.0 were not Year 2000 compliant if I have my facts correct. 3. Data on short interest--average number of shares shorted for the past six months and actual number on 12/15/97. 4. Actual number of shares--somehow I think it is slightly higher than the 42.6 million reported by AOL. 5. Why all this detail--well do a simple calculation. If the shares are 42.6 and profits in fiscal 1998 are $0.65 (Value Line number) times the number of shares you have total profits of $27.6 million. Value Line projects revenue at $535 million--so the yield would be 5.2%--for a software company that is not good enough--What would happen if revenue were to come in at say 500 million? Well it would take a spread sheet to figure it out but the effect the price of the stockwould be negative because of the leverage effect. $500 million would be a 25% growth in revenue--the bottom line is that the company absolutely has to get a better fix on costs to bring the yeild up to a minimum level of 10%. Well, I feel certain Skadra will call--and I will report his answers. Now what can happen to the company if all goes well for a few quarters--In my opinion its price should hit an absolute minimum of 2.0 price/sales ration (currently it is .91). Using a straight line extrapolation we should have a $20 stock--the risk level on the down side appears minimal compared to the risk level on the up side. So Walter--I agree with your analysis--just takes me longer to get there--Maurice Sadowsky Chicago