To: Ward Nicholson who wrote (359 ) 1/7/1999 4:16:00 PM From: Wizzer Respond to
I have bought this stock in the past. Some analysts do not believe that Corel has indeed turned the corner, and have put SELL recommendations on it. Corel is likely to post it's first profitable quarter in over a year, so this is where the speculation is coming from. This sustained rally bodes well for the stock, because typically it would run up for 2 or 3 days then sink back. Spreads are typically a nickel, and it moves slowly enough that a person can get in without too much trouble. Direction is decided in the first 15 minutes or so of trading and can jump significantly in this period, sometimes hanging around at that price all day long. Day traders are all over this stock, and move it accordingly. Jan 20th is the expected date for the release of year end results. Anticipation of the profit is what is driving the stock now, but IMO the stock MAY run up then drop sometime after the release. Need to consider how quickly it has moved up. Should be interesting to see what happens just before and after this point. I'm not an accountant, but look to see if the profit has been made up of increased sales and resulting profit, or reduction of things like R&D, etc... make the profit. This is crucial for the future, as Corel really needs a newer product to keep profits and growth continuing. Corel Draw and Wordperfect are good for continued sales, but something new must tip the scales in their favour. Don't get caught up in the "glamour" that is Michael Cowpland, as he oftens spews grandiose notions that do not materialize. Money can be made in this stock, just be careful.
