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Technology Stocks : Verity (VRTY) -- Ignore unavailable to you. Want to Upgrade?

To: Adam Smith who wrote (799)	7/25/1998 2:22:00 PM
From: TATRADER	Read Replies (1) \| Respond to of 1011

Adam, sorry it has taken me so long to get back to you...I work every weekend, so I am just popping in to respond... VRTY Moving up in a pennat formation. Moves up 2.50 cents on a spike, then consolidates down about 1.00, before next spike..Stock has done this three times in a row...However, last spike fizzled in 13.00 area..We basically repeated the 3rd consolidation pattern again...Stock moved back to support that I have pegged in the 11.25-11.50 area...Next spike should be to 14.00...That is my next target...However, the ADX has been weakening showing that this trending stock is stumbling..ADX is down from 27 to 22...Thus, we presently have a trading range stock from 11.50 on downside to 14.00 on upside...Basically you have traders who are playing this pattern...They buy around 11.50, and sell to us dummies who buy near 14.00...When I see the ADX pick up and 14.00 taken out on strong volume, I will be back...But I just don't have the time to play this pattern, it is too slow moving for me.... Regards, Mark

To: Adam Smith who wrote (799)	7/30/1998 11:08:00 PM
From: Matt Webster	Respond to of 1011

Hi everyone. I'm new to Verity and this thread and wanted to share my analysis. I've looked at Verity from both a would-be purchaser's perspective and as an investment. The main reason I came to Verity was that it has a very competitive product. One can get a free search engine with Microsoft Windows NT (Index Server 2.0), but it pales in comparison to the Verity Information Server. I then learned that Verity worked a deal with 25 academic institutions at a price of $0.50 per user per year. This indicates to me that they know the product needs to be priced aggressively to compete with Microsoft, AltaVista and Infoseek and are willing to get the job done. Are you all familiar with pricing on Information Server? I must admit I was a little shocked, even though I saw the pricing for Ultraseek which has the gall to price by the document. I asked for the search engine for a 50-seat intranet version. The price was $8,000. For the spider add-on (searches additional servers), that was $10,000. For reference, the infinite version for Solaris with spider (usable on both internet and intranet by unlimited version) is apparently a $100,000+ product. My sales rep indicated that if I was willing to purchase by the end of the quarter, there could be a price concession of about 20-25%. I don't know whether this signals a disappointing quarter or is just aggressive salesmanship, but it definitely is interesting. I would also note that the sales rep was articulate, but was not intimately familiar with the product. Just FYI. Anyway, now moving on to the financial analysis... I see revenues of about $50 million annually, which is about 2.5x on a price to sales basis. This revenue figure comparable to the smaller Web portals like Infoseek, but their price to sales is outrageously higher. As far as I can tell, Verity has a highly strategic product, which could be bundled with a Web server, relational database, or groupware. I suppose Lotus, Allaire and others have licenses, but these are not exclusive and are not accessing all the software features. I do not see why any number of larger software firms do not snap up Verity. For most, they would help justify going off the Microsoft standard and would not harm or actually improve financials. The list of top contenders in my mind is: IBM (DB2), Netscape (Enterprise Server, SuiteSpot), or Microsoft (though this seems politically impossible). Well, those are my thoughts. With Verity at about $11/share, I am tempted to put some money in, but whenever I do that, the stop immediately gaps lower. I am looking for it at $9-10. Does anyone have any direct experience with the product? Since I may use this in a project, I'd like to know as many fellow users as possible. Good luck, Matt