Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (3031)	8/8/1998 7:33:00 PM
From: dougjn	Respond to of 6021

I think you are right about why the market has discounted Neta's PE. I also think that may be poised to change, real soon here. There has really been a pretty profound change in the company, and the market wanted to see if Larson could pull it off. Evidence so far shows he is. Much better than is generally the case in tech mergers. Much better. That's part of what makes him so brutal from an employee point of view, I guess. The change of course is that Mcaf was a hyper growing small niche software company without really effective competition. Then the lawsuits threw some doubt on the competitive issues. And the Neta acquisition made it a much bigger and more diversified company. With a slower growth rate. However, I think the market will increasingly recognize the growth rate as very solid and stable, given the increasing diversification, market share, and suite domination strategy of the company. I think we are gonna see the multiple expand to well over the growth rate (what perhaps 35%?) soon. It was starting to happen in the run from mid 40s to high fifties, before the market took its swan dive in the last three weeks. Doug