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Technology Stocks : Concurrent Computer (CCUR) -- Ignore unavailable to you. Want to Upgrade?

To: Valery Portnov who wrote (3548)	4/30/1998 5:35:00 PM
From: jeffbas	Read Replies (2) \| Respond to of 21143

Whenever you have an inflection point such as today and next week in a stock that has risen a lot, it always pays to sit back and evaluate why it pays to hold it or not. Sometimes you will find that you should sell, or reduce holdings, or even buy more. I was on the call and impressed: -There is the market size and need for VOD. As I posted well over a year ago, I wouldn't want to be a video store owner. -Despite my issues with the company's ethics, Corky is precisely the dynamic, entrepreneurial kind of leader you want in this situation. -Their product seems at least adequate, as James (technical expertise) tells me what Corky's comments and his answers to my last questions mean. (I will have to ask him about tmrent's prior post.) -The company would be making $.25 or so without VOD. How often do you get a chance to be on the ground floor with a company making money after the expenditures on new technology. Companies with new technology losing a dollar a share, and making a profit who knows when are a dime a dozen. Just look at biotech. The fundamental minus, in my view: Maintenance revenues will drop by $10 million over the next year or two. The Aegis contract looks to be a few boards from time to time costing $200,000 or so. In fact, that may characterize the future of the business. As PC's get ever more powerful, they will erode the low end real time market for CCUR, which may not be replaced by new high end applications then made possible. The build out of VOD, AS DISCUSSED ON THE CONFERENCE CALL (and not what might emerge in Atlanta), suggests that it may be difficult to overcome the "drag" discussed in the prior paragraph for some time, and show material sales and earnings progress. My conclusion, based on what we were told today is "hold for eventual higher prices". (The persistent end of day buying suggests institutional investors are more optimistic.)