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Technology Stocks : RATIONAL SOFTWARE- BUY OR HOLD -- Ignore unavailable to you. Want to Upgrade?

To: ratlong who wrote (2798)	1/19/1999 5:40:00 PM
From: Viswanathan Visweswaran	Read Replies (1) \| Respond to of 3115

> H&Q upgraded late last weekend, BroadView supposedly did as well. > This is sweet justice... Where the hell is Wendell Laidley? No > strong upgrade from that guy? If anyone owes it to Paul and Tim, > it is Wendell. He did reiterate his buy last week... Did anyone have a chance to listen to today's CC regarding integrated products for e-commerce and internet? Rational Software up on strong Q3 results NEW YORK, Jan 14 (Reuters) - Shares of Rational Software rose 13 percent Thursday after it reported third quarter earnings that beat Wall Street estimates. Shares of Rational, which is based in Cupertino, Calif., traded at 29-7/8, up 3-5/16, and touched a new 52-week high of 31-1/2 earlier in the session. The company reported third quarter profits, before special items, of $0.19 a share, $0.02 above consensus expectations of $0.17 a share, according to First Call. Net diluted earnings per share was $0.20, compared to $0.11 last year. Credit Suisse First Boston analyst Wendell Laidley, in a research note, said the quarter was characterized by strong demand for Rational's bundled software suites, new products and Internet-related customer projects. ''Rational's sales organizations, combined with more suite sales, is driving record transaction volumes and large deals,'' Laidley said. ''Given strength of pipeline, most of the larger deals represent continued upside.'' He reiterated his buy rating and raised his price target on the company's shares to $37 from $29.

To: ratlong who wrote (2798)	1/19/1999 5:55:00 PM
From: Hans-Erik Eriksson	Read Replies (1) \| Respond to of 3115

ratlong, I'm trying to analyze all this - will get back to you and the thread when I'm done. Overall looks very promising though, this is the completion of all the mergers trying to get a streamlined product portfolio. Agreed, nice move on pricing too. Hope they don't sit too much in the lap of the Redmond,Wa. company though - Rational Rose for Java is the Rose version with the highest growth and MSFT ain't winning that war. As the hub for all their suites I see Rational Unified Process and Rose, which is great. All those tools without a process is useless, and the base for development should be the architectural models - also realize the amount of training and consulting necessary to deploy all these tools into development organizations (hey, that's what I'm doing - but I'll leave some work for RATL... :-) ). Will try and get back with some more analysis soon. Still maintain my view of a 'gorilla pattern', it just becomes more and more apparent: how can any other company cut in here ? I didn't catch the teleconference (too long-distance call), can anyone sum it up ? Any news that weren't in the news releases ? Best, /Hans-Erik