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Technology Stocks : Manugistics, Inc. (MANU) -- Ignore unavailable to you. Want to Upgrade?

To: Teknvstr who wrote (764)	6/10/1998 8:11:00 PM
From: Amsterdam	Read Replies (1) \| Respond to of 1670

Couldn't agree more my fellow Buyer.

To: Teknvstr who wrote (764)	6/10/1998 8:27:00 PM
From: seth thomas	Respond to of 1670

Actually, I believe the market cap is more like $570MM, not $460MM, and based upon current run rate of $40MM/qtr, more like 3.5, not 2X sales. 3.5X sales is about right, maybe even generous, for a company not growing and not profitable. I would be happy to list a number of software companies that are selling for 1X sales. Some are also enterprise apps (INFR, ROSS, for example). >>a software company with Gross Margins better than 60% is a SCREAMING buy. Pretty much all enterprise software companies have big gross margins. I think that the stock is priced right in the low 20's. It was ridiculously overpriced before. If MANU executes, the stock will move. RIght now, you'll likely see a trading range of 20 - 23 for three months - until next quarter. The only thing that would affect this significantly are a pre-announcement of more poor results (stock will see 10) or some sort of acquisition of them. And, I seriously doubt that management would entertain an acquisition offer at any reasonable premium over the current price. Even a premium of 50% would only bring about 33 - and they've tasted 66. So - watch for this to drop more (there were some folk looking for dead cat bounce today), maybe to 18 - 19. Then maybe pick some up to trade to 23.