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Technology Stocks : PRVO:PREVIO INC earnings +45% for '96 (A good story) -- Ignore unavailable to you. Want to Upgrade?

To: Norrin Radd who wrote (847)	9/1/1998 5:55:00 PM
From: Doug Fowler	Read Replies (2) \| Respond to of 955

Tom: I would agree that there are some very good buys out there right now. Today's rally showed that people really want to own the stable names, like Cisco, Microsoft, Dell, etc. There is a lot more risk with a lot of the smaller tech stocks because their future earnings and viability has a big question mark. Some of the compelling values out there right now include Symantec, Premisys, Visio, Dallas Semiconductor and many, many more. Stac is somewhat compelling because of its low valuation, but I think people are waiting for the company to prove that it actually has a future. The company really hasn't grown for years, and right now can't even show a profit. The company has tried several times in the past year or so to "boost" its stock through buybacks, and now by spinning off Hifn. Everytime the company makes one of these announcements, the stock pops a little, but then it always falls back to where it was before the announcement. I would agree that the downside for Stac is a positive for owning the stock. But there will be no significant upside unless the company starts to deliver (or is bought out). The Hifn spinoff will be interesting. I wonder how much cash Stac is going to provide to Hifn initially. But without Hifn, where will that leave Stac? It will be a money-losing software operation, with a dying cash cow (ReachOut) and a low revenue backup product (Replica). Have you ever wondered why Stac doesn't provide actual sales numbers for ReachOut and Replica? They keep saying ReachOut is declining and Replica is increasing, but they never break out the numbers. Could it be that Replica numbers are still very low?