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Technology Stocks : Simware (SIMW) -- Ignore unavailable to you. Want to Upgrade?

To: Jack Zahran who wrote (32)	2/27/1998 12:43:00 AM
From: Jack Zahran	Respond to of 125

Here's another contract story from 2/12/98: SIMWARE: Simware enables online application process for German Insurance giant AKV datek.newsalert.com

To: Jack Zahran who wrote (32)	2/27/1998 1:17:00 AM
From: Jack Zahran	Respond to of 125

Here is what I have found so far: Their industries P/E is 57. Considering how quickly they are growing, let's give them a P/E of 50. If we estimate that their earnings will continue to grow as their earnings release suggests it will keep growing. Let's say by 2 cents a quarter (which I believe is very conservative considering the jump they already made,) then we come to .40 a share for the next four quarters (including this one). That makes a potential target of $20 a share. Considering the Canadian factor I would say that $12 - 16 may be more likely. That would be a great percentage gain. However, it looks like their earnings will increase greater since their products generate good licensing revenue. Especially does Salvo have a great potential with companies trying to tie their legacy systems to the Intra/Internet. Another consideration is that their close relationship with either Novell and Microsoft could start a bidding war for control. Their RexxWare product is very strategic to Novell and well reviewed. And, their Salvo product is exactly what Microsoft needs for their backoffice product to infiltrate the strongly IBM entrenched Fortune 500 corporations with their myriad of legacy systems. (Novell currently pays a good licensing fee for RexxWare and Microsoft starting bundling Salvo eval in their BackOffice third-party CD.)