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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: M. Marquette who wrote (23846)	12/3/1998 5:46:00 PM
From: Sergio H	Read Replies (1) \| Respond to of 79768

Mike, I know that you do some excellent dd when selecting a stock, so I want to look at ENTU paying attention to the details. I'll get back to you over the weekend. Amigo Sergio

To: M. Marquette who wrote (23846)	12/4/1998 8:24:00 PM
From: Sergio H	Respond to of 79768

<ENTU> Mike, I found that investor's concerns with ENTU were : 1. the competition 2. dependence on a few customers 3. unreliability of earnings The competition may be the biggest concern. ENTU seems to be amarket leader in PKI solutions, but it currently competes with GTE, IBM, Verisign.Others including Security Dynamics, Network Solutions and MICROSOFT (yuk !) have announced plans to enter this market. Opinion: If internet commerce ever does take off, there will be plenty of market share for several players. The dependence on a few customers seems to have been repaired. Revenues from the largest four customers for the first nine months last year were more than 60% of the total as compared to less 30% for the same period this year. Additionally, sales outside North America have increased from 4% of the total to about 21% during the last year. The new partnership with Secom is potentially huge, as you pointed out. Secom has over 500 customers in Japan and provides ENTU access to other Asian markets. The unreliability of earnings is due to revenues being dependent on orders received and shipped in the same quarter. The Co. has no reliable means to project earnings. Opinion: Increased customer base and increase in internet commerce will have positive impact. Investors looking for quality internet plays....Companies offering potentially huge growth, a solid business plan and the ability to carry it out.....will find ENTU. Amigo Sergio ps I noticed that Nortel has retained 66% of the shares. Is this correct and if so, do you know if Nortel plans on holding or selling ?