Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Datastream Systems, Inc. (Nasdaq: DSTM) -- Ignore unavailable to you. Want to Upgrade?

To: Wallace Rivers who wrote (482)	1/5/1999 1:29:00 PM
From: Wright Sullivan	Read Replies (1) \| Respond to of 721

Wallace- I do not have any comments on the first two issues you mentioned, less rapid license growth (I assume this means that they aren't selling as much CMMS software) and greater a/r outstanding. We'll just have to see what the quarter brings on license growth. Regarding e-commerce market competition, there is no question that many companies do or want to compete in this space. Personally, I think DSTM has an edge in the maintenance market in that e-commerce is a natural extension of what they are already doing there. In other words, it is a good fit for their existing customers and should also attract new CMMS/eMRO customers. No, DSTM won't dominate e-commerce in general, but if they can dominate CMMS e-commerce, even for a few years, then DSTM shareholders should benefit greatly. But the estimates I have seen do not include much eMRO earnings, so anything DSTM does there should be gravy, and it could be a lot of gravy. Balance sheet looks OK to me, but I think they are being punished severely for the writeoffs of acquisitions as R&D, and more importantly doing so with little announcement. For example, a few months ago DSTM had a conference call to announce earnings which were good, and many an attaboy and pat on the back was heard. I bought some DSTM early the next morning. Then, later in the day, they announced that they were taking an acquisition writeoff charge in the quarter that basically wiped out that quarter's earnings. I do not recall hearing even the possibility of a writeoff mentioned in the conference call. That, in my opinion, may have left many analysts feeling blindsided by DSTM. And such an effect can have lingering consequences, making them look like they don't know what they're doing financially or when dealing with the street. Having said all that, I am very bullish on DSTM over the next 2-3 years. I "tripled up" my position when DSTM dropped to around 9 recently, so even though I felt burned by DSTM, the opportunity looks huge to me. All IMHO only, of course, and I will be watching closely the quarter's performance on the points you raised. -Wright

To: Wallace Rivers who wrote (482)	1/5/1999 11:19:00 PM
From: Shane M	Read Replies (1) \| Respond to of 721

Wallace, Yes, license growth has slowed for now to 14 to 18%, but it seems to me the stock price has discounted that. I'm willing to give some of the slowdown to Y2K issues for now and watch what happens. The accounts receivable do seem to be high. This isn't a new developement as they were high at the end of last year too. I haven't contacted the company, but if anyone does it would be interested to know why sales remain in A/R so long. This is much more than can be explained by back end loaded quarters. Here's the last press release I can find. quicken.excite.com Has some good info. Claims 55% market share by # of units sold. Product is highly regarding in the industry claiming top award for 5 yrs. Shane