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Technology Stocks : Intersolv News -- Ignore unavailable to you. Want to Upgrade?

To: PCSS who wrote (841)	5/26/1998 8:40:00 PM
From: Michael L. Busser	Read Replies (1) \| Respond to of 1069

I hope it will be a case of sell on the rumor and buy on the news this quarter. During the last two quarters, it paid to buy on the rumor and sell on the earnings news. I think that might get reversed this quarter or some people know more than we do about the upcoming earnings report. For the years ended Apr of 1998 & 1999, the earnings estimate are $.70 and $.98. This translates into a PE of 19 and 13 at todays closing price of $13.125. The S&P is selling at a PE of approximately 24. This means that ISLI is selling at a discount to the market of between 20-46% depending on the year in comparison. This just does not make sense given the earnings and sales growth for this company compared to the S&P 500 unless they are going to materially miss the earnings for this quarter. In that case, they will have absolutely no credibility and we will be looking for a new management team. I expect that they will meet the earnings projections or else they would have already warned the street. I am more concerned about the sales growth.