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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: Chris Anderson who wrote (3944)	1/6/1999 1:44:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 6021

Chris, if you watch cash flow rather than earnings you will be a much happier camper. None of this stuff has any affect on cash flow (which still looks strong). The key in watching these companies is the growth in free cash flow. Earnings is an illusion! TTFN, CTC

To: Chris Anderson who wrote (3944)	1/6/1999 2:06:00 PM
From: AlienTech	Read Replies (2) \| Respond to of 6021

=Network Assoc Stk -3: Charges Stem From 2 Acquisitions Network Associates said Wednesday its preliminary fourth-quarter earnings rose 62% from a year ago to 47 cents a share, beating the 46-cent First Call consensus estimate based on 20 analysts' predictions. The $220 million in charges subject to SEC review stem mainly from the company's acquisitions last year of CyberMedia Inc. for about $130 million and Magic Solutions for about $110 million, Larson said. Analysts were mixed in their views of the significance of the SEC review. BancBoston Robertson Stephens' Powers believes any cut in earnings resulting from a write-off reduction will be less than the company's worst-case scenario of a quarterly reduction of 2 cents to 3 cents a share for five to seven years. Powers called the SEC review a "nonevent" that the company should be able to counter through improved efficiencies, and he is maintaining his strong buy rating. Jefferies & Co. analyst Bruce D. Smith reiterated his buy rating for Wednesday despite the SEC news, saying investors will focus on earnings excluding amortization costs going forward. He raised his 12- to 18-month price target to $100. But Adams Harkness analyst Kevin Wagner said the SEC scrutiny of Network Associates was one of the factors that contributed to the Adams Harkness rating downgrade Tuesday to market performer from accumulate. Wagner said a reduction in in-process R&D writeoffs could exceed 2 cents to 3 cents a share, and it will be difficult for the company to make up the loss partly due to increased competition. "Our point was clearly Network Associates has gone on acquisition binge," increasing its exposure to an SEC crackdown on in-process R&D writeoffs, Wagner said. - Peter Loftus; 201-938-5099. (END) DOW JONES NEWS 01-06-99 01:33 PM =Network Assoc Stk -2: Drop Comes Despite Co.'s Upbeat View By Peter Loftus NEW YORK (Dow Jones)--Shares of Network Associates Inc. (NETA) were off more than 5% Wednesday on concerns that a pending Securities and Exchange Commission inquiry into the company's acquisition-related accounting methods would reduce future earnings, analysts said. But Network Associates said it would take steps to offset any earnings reduction resulting from an SEC review. Chairman and Chief Executive Bill Larson also said he was comfortable with analysts' 1999 earnings expectations of $2.13 a share. The Scottsdale, Ariz., supplier of network security and management software said Wednesday morning it received an SEC comment letter indicating the commission would review about $220 million in writeoffs for in-process research and development in connection with the company's 1998 acquisitions. The SEC recently issued new guidelines for determining in-process R&D writeoffs. In many cases, analysts said, the guidelines are expected to reduce the size of such writeoffs, thus increasing amortization costs and reducing future earnings. While Network Associates also said Wednesday morning it expects to report fourth-quarter results beating analysts' estimates, analysts said the SEC disclosure overshadowed the positive news. "Any time Wall Street hears the SEC is reviewing a company, they react negatively," said BancBoston Robertson Stephens Inc. analyst John F. Powers. Network Associates' Larson said his company was not the only software supplier to face SEC scrutiny of in-process R&D writeoffs. Fourth-quarter results were strong, he said, and the company could improve operational efficiencies to make up for any lost earnings from a reduction in writeoffs. Network Associates recently traded at 56 13/16, down 3 1/8, or 5.2%, on volume of 9.5 million shares, compared with a daily average of 2.5 million. (MORE) DOW JONES NEWS 01-06-99 12:03 PM

To: Chris Anderson who wrote (3944)	1/6/1999 3:46:00 PM
From: Joanna Tsang	Respond to of 6021

p.s. Joanna, good luck on your house. I went through the same thing about a year ago. Dis something stupid, though. Signed the papers on the house and stayed in the market and watched it tumble! I was lucky to be able to close on the house once it was built and have some stock money left over! That's why I originally wanted to get out of the market at $57! But when NETA shot passed $57, I decided at that time that NETA was a strong enough company that I can wait 'til 1999. But later the stock took a fall and triggered my "protective" sell point. Since then, TUMS would not have helped me...would have needed something like a stomach pump!!! :-) I was also getting lots of "hints" from hubby dearest that we really need a house, because it was cutting into a lot of things we want to do. But he was just as surprised that I decided "to heck with the tax thing, I'm selling and getting out of this market!!!" So...there were a lot of factor I was dealing with and I made the decision that I did! Again, probably a stupid move, but I had to do it! You guys are already recovering quite nicely. All of you that are lucky enough to get in at low-to-mid 50's...congrats!!! You're already making a decent profit!!! It was around 58 last I've checked. (AT: Did you manage to jump in? I guess it's my gift for selling...a nice BUYING opportunity!!!) :-) To David Rubin: Joanna -- you must feel pretty damn good right now I don't think about it. I just think of the goals I've plan and stick with it! I have lots of goals to achieve this year!!! Cheers, Joanna