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Technology Stocks : BORL: Time to BUY! -- Ignore unavailable to you. Want to Upgrade?

To: Mike Harkness who wrote (8582)	1/17/1998 2:19:00 PM
From: Paul Corbett	Read Replies (2) \| Respond to of 10836

What is Borland's Direction? UP. $6.88 is cheap for a stock which is underlying profit, good management and good presence in its market. The negatives are the uncertainty about the merger and if successful a potential $20m once only charge in the March qtr. At the time of the merger we were promised that earnings will not be diluted. I take this to mean that the level of profitability of the December qtr ( my guess is close to 10cps) will be the underlying profitability for 1998..i.e an "underlying" rate of 10cps. Assuming that the "restructuring charge" is going to be about 50 cps in Q1. This would give Q1 -40 Q2 10 Q3 10 Q4 10. Have they run out of new ideas to help generate growth? Dunno,but they should have enough talent to keep coming up with ideas but I would like to go long at some point. seems to me there are 3 choices. 1)NOW when the price is close to its low 2) About the time when the Apr qtr result is announced...it will be interesting to see how the market treats the result 3) After the June qtr result at which time the bad news is behind and you are looking forward to 2 qtrs of profits. Note that in 1997 the share price rose mainly in the second half of the year and the cycle might repeat in 1998.