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Technology Stocks : Security Dynamics SDTI -- How much money can they make?? -- Ignore unavailable to you. Want to Upgrade?

To: Trader Dave who wrote (360)	4/3/1998 1:51:00 PM
From: Jonathan Brown	Respond to of 1614

Good word from Cowen on Briefing.com Story Stock page: 13:35 ET ****** SECURITY DYNAMICS TECHNOLOGIES INC. (SDTI) 27 1/4 +5/16. Cowen & Co is today advising investors to take a deep breath and get grip: the warning issued by network security software firm, Security Dynamics, was not that bad. Yesterday morning, SDTI informed investors and Wall Street that it expects 1st qtr results to come in shy of Wall Street views. For the period, SDTI expects an operating profit of $0.14 a share, a nickel below Wall Street projections, compared with year-ago profit of $0.12 a share. The company puts quarterly revenues at $39 million, up 37% on a year/year basis. On the news, Goldman Sachs booted the stock from its "recommended list" to a level of "market perform." Cowen & Co, however, was not so reactionary. While it acknowledges that the earnings warning came as a surprise, it does not think yesterday's 15 9/16 point, or 37%, flogging was warranted. Continuing to rate the stock a "strong buy," Cowen sees price upside of 50% from these levels, to the firm's price target of $41. It's rationale: while Q1 will come in about 26% light and Q2 EPS could miss by 5 cents ( or approx. 23%), Cowen sees SDTI's financial difficulties --which the company stated were a result of its inability to to close certain sales before the end of the quarter-- as temporary. Moreover, the firm is expecting big things from SDTI's new SecureSite product, which is scheduled to be rolled-out by early-June.