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Technology Stocks : Forecross Corporation : Y/2000 -- Ignore unavailable to you. Want to Upgrade?

To: Rick Voteau who wrote (1310)	7/28/1998 2:51:00 PM
From: Mark Jurik	Read Replies (2) \| Respond to of 1654

Rick, I agree that there are 'elephants' out there to be snagged, and that some of them may be fat. However, let's focus on this statement: "Bag one elephant, say 40 million lines of code at $.50/line and overnight we are a $40 stock." Share price is determined by investors, who seem to have a different set of rules when applied to technology stocks. They want to see a promise of large future earnings. The Y2K promise seemed believable two years ago, as even a mere teaming agreement would bump up share price. These days, TA announcements have little or no effect at all, and demand for evidence of future performance is very strong. For example, California Associates (CA) recently released their quarterly report with earnings that exceeded estimates; nonetheless, immediately after it was released, stock price fell $13. Why? Because the report contained a sentence expressing concern that the Asian economic crisis may affect future sales. Apparently, it's not what was already snagged that matters, it's a firm's long term prosperity that investors seem to care about. This is why I asked those three important questions a while back. I want to get a handle on future earnings potential. Unique technology is one factor worth considering. With all of Asia, including Japan, having financial problems, I wonder how much investors will weigh the earning potential of 2-byte character recognition. At this time, Asian firms have more pressing matters to attend. It's not clear how the crisis will play out as bailouts are producing less recovery than hoped. Now that Russia is getting another large loan, the international fund hasn't much left to give out. Recovery may take longer than first thought. So, one can only guess when investors start thinking the time for Asian contracts has arrived. I appreciate your willingness to discuss issues. Regards, Mark Jurik