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Technology Stocks : Documentum (DCTM) Software -- Ignore unavailable to you. Want to Upgrade?

To: Hewson who wrote (332)	8/13/1998 4:49:00 PM
From: Ariella	Respond to of 600

Dear Hewson -- I don't own DCTM, but have been glancing at it and OTEXF (Open Text Corp.) for a while. There's a lot of program trading going on and institutions really churning high p/e stocks -- of which this is one. On the other hand, the intranet/document management market is destined to grow big and both these firms are leaders, so eventually I'll jump in. Why I hesitate now is concern about year-end tax selling (I know the end of the year seems far away, but profits in general are thought to be soft in the near-term and it will be tough to go against the current, like salmon going upstream.) The plan is to keep my cash handy and bet on the intranet market later this year. Best of luck, Ariella

To: Hewson who wrote (332)	8/13/1998 6:16:00 PM
From: Snowshoe	Respond to of 600

Is this the article? Excerpt from Interactive WSJ, August 12... DOCUMENTUM Documentum occupied about a half-percent position in Mr. Schaff's fund, and he has added to that stake during recent price dips. The stock spiked briefly on Friday, after Robertson Stephens initiated coverage with a "buy" recommendation. But, trading near $41, it's still 31% off its 52-week high. The company is a leading maker of software to help businesses manage and store information. Documentum had early success with the pharmaceutical industry, developing software that drug makers use to organize, edit and reuse information they need in the Food and Drug Administration's application process. The company has since moved into the manufacturing, financial-services and government markets. "Directionally, this is the way business has to go [because of] information overload," says Mr. Schaff. George Gilbert, an analyst with Credit Suisse First Boston in San Francisco, says the returns to customers are high. He has a "buy" on the stock with a 12-month target of $75. He raised revenue projections last month, after Documentum reported second-quarter sales of $28.4 million, up 64% over the previous year. He is predicting revenue growth of 57% this year and 48% in 1999. "It's been hard to do [document management] from a technology point of view," says Mr. Gilbert, "and they've spent a long time perfecting their platform."

To: Hewson who wrote (332)	8/13/1998 6:21:00 PM
From: Tokyo VD	Read Replies (1) \| Respond to of 600

Hewson, You shouldn't believe everything you read. Schaff has said he buys stocks that are "down", but he bought AFCI when it got cut in half (between $21-25) because it was a "mo" stock that didn't meet expecations. Now, the mgmt has said that things are worse than they thought and it is trading at $11 7/8 (so much for his "good" research). As for DCTM, Schaff has been buying the stock all the way down from its recent high (hardly a "value investor"). Frankly DCTM was a "mo" stock that had its EPS cut by its investment bankers (which means that "mo" funds start selling). That is not a good sign regardless of what analyst at Robertson or mutual fund says. So, Schaff's been buying stock on the way down ("catching the falling knife") to average down his costs. Unfortunately, I'm not impressed with Mr. Schaff's investment strategy, nor his research. Good luck with your investments. Tokyo