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Technology Stocks : RATIONAL SOFTWARE- BUY OR HOLD -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Haegin who wrote (2352)	4/23/1998 9:23:00 AM
From: Adam Smith	Respond to of 3115

Just pulled from briefing.com. Look for nice move today. RATL is out of the penalty box. Valuation model could be as high as .60(99EPS) x3O-35 PE=18-21 09:13 ET Rational Software (RATL) 13 3/4: Stock indicated 1 1/4 higher after company reported Q4 net of $0.12 a share, in line with analysts' mean estimate. The stock is being upgraded by several firms this morning. Good Luck Adam

To: Thomas Haegin who wrote (2352)	4/23/1998 9:40:00 AM
From: Thomas Haegin	Read Replies (1) \| Respond to of 3115

Board, I have now listened to the CC and I recommend that all interested folks do. I thought it was encouraging. It certainly strengthend my conviction that RATL is worth holding. Some hilights, IMO: - Cash-flow stronger than expected (at around $15m, if I heard correctly), resulting in better than planned Cash & Cash equivalents of $289m; - 74 sales days outstanding, in line with RATL's goals; - New bookings stronger than expected; - Levy "very comfortable" with consensus estimates of EPS 0.54 for FY 99 (ending in 03/99) and $365m in revenues (maybe 375m, I may have mis-heard the figure); - Introduction of a couple of new products/upgrades like ClearCase 3.2 and ClearQuest 1.0 (a new product, as I understood) that did "very well" in the initial introduction period; - Levy stressed their cooperation with MSFT. I got the impression he really is positively convinced of it; - The NT platform products continue to sell very well; - An endless list of Blue Chip customers in all sorts of industries: Citicorp, Lockheed Martin, Boeing, Airbus, United Airlines, AT&T... you name it; - Levy stressed the importance of continuing to drive hard: "continued hard work needed, but quite confident..." and "well positioned to meet expectations in the future..." and finally, "... the company will be a lot larger in two to three years than it presently is". Like the other RATLer here, I noted that the analysts made compliments for the good performance. All in all, RATL looking good and rather getting better, IMO. regards, Thomas