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Technology Stocks : The Ultimate Software Group, Inc. (ULTI) -- Ignore unavailable to you. Want to Upgrade?

To: PHarris who wrote (6)	7/3/1998 12:56:00 PM
From: Trader Harvey	Respond to of 12

The buy recommendation is "standard" for just about all high-tech IPOs shortly after they emerge from their quite period. It's expected of one or more investment banks if they wish to get any business from the company. In this case(as with many new IPOs, the BUY signal is way off. ULTI is just an also-ran in the increasingly crowded HRM-software field. The really big guns like Peoplesoft are moving downscale to what has been ULTI's market and numerous others(SAP, Baan, Deltek, etc) are coming at this market with the advantage of integrating HRM with their ERP suites. Also,once the 180-day lockup on this stock expires late this year, the investors are likely to start bailing. They may be able to pump earnings till then, but I would scrutinize each earnings report very thoroughly in terms of receivables, margins and other indicators of potential problems. This is clearly a short sale not a buy.