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

To: shane forbes who wrote (9012)	2/9/1998 1:21:00 PM
From: Shroder Wertheim (Hijacked)	Read Replies (1) \| Respond to of 10836

Why I consider Borl a great buy (1) Strong marketing position in a multi-tier enterprise market. There is no Microsoft in that group. Borland main competitors are BEAS and IONA, which I think Borland definitely has the advantage of having the more complete tools today, the trend is to acquire most of the development tools from one single vendor. With the high market value of BEAS, BEAS could use it to do many stock-based acquisitions, but integrating it could take time and it might not work. (2) VSGN acquisition. One of the most difficult parts of MA are to integrate its people and technology. Borland has the benefit of VSGN technology already be integrated into one of its product. VSGN is geographically close to Borland, Del's experience should reduce the risk of failure of integrating VSGN's people. (3) Direct sale is key to enterprise business. With VSGN's acquisition, Borland direct sale forces just double in size, it could penetrates into VSGN's customer based with Borland's tool. I think VSGN is not going to negatively effect Borland's bottom line from the very beginning. The VSGN peoples have more tools to sell into its existing accounts, it only needs to increase the Borland tool sales by $2.5M per quarter by VSGN sale forces, it could break even on its own. (4) Low valuation. BEAS has sales of 41M last quarter and it is value at 1.3B. Borland just needs to increase its sales by 10% quarter to quarter, it will be very profitable, and suddenly its P/E will look low.