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To: Glenn D. Rudolph who wrote (22068)	10/17/1998 3:30:00 PM
From: Raiders	Read Replies (1) \| Respond to of 164684

Silicon Saturday: PeopleSoft, Yahoo!, Javelin Systems, Nextel By Brian O'Connell Special to TheStreet.com 10/17/98 12:15 AM ET A selection of some of the most intriguing tech stock ideas on the Web. The items presented do not represent the views of TheStreet.com; rather, the collection is offered as a service to our members who may be scanning the Web for stock-related information. PeopleSoft Bill Schaff (10/12) If you're like Bill Schaff, it's not hard to get excited about PeopleSoft (PSFT:Nasdaq). Schaff, co-founder of Bay Isle Financial Management in San Francisco, downplays the importance of the company's recent stock slide. It's down 64% from its April 20 high near 57 and down 47% for the year. "I expect PeopleSoft to weather this financial storm and rebound strongly in the next upturn," he says. Schaff says the company's problems -- like those of many enterprise software companies -- are short-term. Revenues from Y2K compliance software should be rolling in soon, and PeopleSoft's price-cutting campaign to stave off competitors like SAP (SAP:NYSE ADR) is only temporary. "PeopleSoft's share price has been hit hard because the company is under pressure to cut prices to compete with SAP, which is attacking PeopleSoft's dominant position in the market for human-resources and public-sector applications," said Schaff. "But SAP hasn't been successful enough to justify the precipitous decline of PeopleSoft's share price." "The stock trades at 23 times next year's consensus earnings of 91 cents. Yet, PeopleSoft is increasing its revenue and earnings more than four times as quickly as some industrial companies that are selling at similar price-earnings multiples." More information can be found at: www.techweb.com Yahoo! Adam Lashinsky (10/9) Can Internet stocks stop their free fall? Maybe not -- at least for now. That's the sentiment expressed by San Jose Mercury News columnist Adam Lashinsky after speaking with William Meehan, chief market analyst with Cantor Fitzgerald in Greenwich, Conn., who's decidedly bearish on formerly safe tech stocks. Take Yahoo! (YHOO:Nasdaq). Lashinsky says Meehan is down on the company, particularly since shares fell 8% to just below 105 on Oct. 8. (They've since recovered that loss.) "The Net stocks have much more than a lot of downside left," Meehan says. "They will break, and break much harder than even I can imagine." Citing "wildly unrealistic" earnings estimates, Meehan told Lashinsky that things will get worse before they get better for Internet companies like Yahoo!. More information can be found at: www.sjmercury.com Javelin Systems Jim Oberweis (10/9) The next time you order a chicken Gordita at Taco Bell, take a look at how the counter clerk enters your order. He or she will log your order on a touch-screen computer developed by Javelin Systems (JVLN:Nasdaq). The firm designs, develops, markets and sells open-system touch-screen point-of-sale computers. Javelin specializes in systems for restaurants, but also serves the specialty retail, industrial and information kiosk markets. Jim Oberweis, editor of The Oberweis Report newsletter, says he is high on Javelin, and has bought 45,000 shares of the company for his asset management customers in recent months. He says a client list that includes Taco Bell, Dunkin Donuts, Burger King and Baskin Robbins spells good news for investors. The company's fourth-quarter revenues rose an eye-popping 332% to $11.6 million, compared with $2.7 million at the same time last year. Earnings per share were 13 cents versus 1 cent over the year-earlier period. Oberweis predicts revenues will skyrocket from $7 million in 1997 to $30 million in 1998 and $55 million in 1999. More information can be found at: www.investools.com Nextel Christopher Larson (10/15) Wireless communications behemoth Nextel (NXTL:Nasdaq) rates a strong buy from Prudential Securities telecom analyst Christopher Larson. "In light of the recent decline in Nextel's stock price and in anticipation of upcoming positive news, we are raising our rating on the company's shares from hold to strong buy," he wrote in Red Herring. Nextel is down 28% from its recent 52-week high, but he expects imminent good news will fuel interest from the investment community. "The company is beta-testing a smaller, lighter cellular phone, manufactured by Motorola (MOT:NYSE), that offers features such as speakerphone, vibrating alert, and multiple lines per phone," says Larson. In addition, Larson reports Nextel may be considering selling its wireless towers, which could bring in $1 billion to $2 billion. That would reduce Nextel's current capital needs and debt levels, leading to positive company valuation levels. "Furthermore, Nextel will soon be one of the first wireless companies to achieve positive operating cash flow in domestic operations. We are forecasting a break-even operating cash flow for domestic operations in the third quarter of this year and a positive operating cash flow for both domestic and international operations in first quarter 1999," adds Larson. "As a result of this flood of good news, we are also increasing our 12-month price objective from $33 to $34." Shares currently trade at 17 after falling 12% Thursday due to a disappointing third-quarter earnings report.