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Technology Stocks : BEA Systems (BEAS) - Undiscovered Growth Stock -- Ignore unavailable to you. Want to Upgrade?

To: MDD who wrote (598)	9/29/1998 6:39:00 PM
From: David Miller	Read Replies (1) \| Respond to of 2477

As I said, I have no problem with the technological basis of their acquisitions at all. My concerns are over what happens after the theory segues into the real world. Businesses don't succeed on force of logic, they win by executing well. Just a couple of comments: BEA has proven that they are in a solutions business and has grown emensly because of it. Because of the sheer volume of stuff that I would have to wade through, I haven't checked back to find out how much of BEA's growth is simply "the sum of the parts" - i.e. simple addition of acquired businesses - and how much is growth from this base number. The latter is in my view vastly more important than the former in determining a strategy's success. The infrastructure of BEA was overbuilt from day 1 in order to absorb the additional technologies Maybe so, although you don't provide any evidence. But again, infrastructure is one matter, real people who have to work together every day is entirely another. I think that BEA is still an acquisition candidate for IBM or Oracle. Everything about the company says the opposite - it has been gathering together the technologies that will allow it to become a major standalone player. Most acquisitions in this arena tend to be "focussed technology buys". Taking on a fully-fledged end-to-end solution company with a competing culture and customer base happens less often. david