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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 (399)	4/14/1998 11:19:00 AM
From: Bulldozer	Read Replies (1) \| Respond to of 1614

Well not much more to add to Trader Dave and Edward - both provide good points. While this latest result is indeed frustrating, IMHO nothing has changed internally or externally - except now you can buy it at almost half its previous valuation. In response to Trader Dave's comment about internal vs. remote applications of authentication - its already happening! And don't forget the recurring revenue model of this company - every three years or so, the tokens expire and a whole new batch is sold at current market prices. Add this to 50% CAGR for the market in general, and SDTI's 65-70% market share, and its hard to find holes in this story. Regarding RSA, its coming under increased competition and is in the midst of transitioning its business model. Yet, analysts still give them 90% market share and with RSA Labs (R&D group)representing perhaps the most elite and well funded encryption research on the planet, its hard not to get excited about the possibilities. In a recent Corp IT survey, encryption was cited as one of the top priorities over the next five years. Another story with few holes. Add everything else (PKI, SSO, VPN, IDI, and SecurSight) and one may look at this opportunity as a fantastic buying opportunity. BTW, I am attending an SDTI/IBM seminar next week and will find out more about this evolving relationship. Bulldozer

To: Trader Dave who wrote (399)	4/15/1998 12:38:00 AM
From: Turs	Respond to of 1614

TD- 1. My understanding is that the client side of SecurSight is due out this quarter, but the server side will not be introduced until Q4. 2. I know there are already many companies using these tokens as two-factor authentication for internal use. I believe Morgan Stanley uses them for that purpose. 3. However you want to slice the company, it appears too cheap relative to its market position and potential. I sold out at $29 but just had to buy back in at $24 1/2. However, because I'm buying in an information vacuum, I also sold a like number of July 25 calls at $2 7/8. So, either my average cost becomes $21.50 or I get taken out at a 12% gain (after commissions) in 3 months. I'm comfortable with that.