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Technology Stocks : Documentum (DCTM) Software -- Ignore unavailable to you. Want to Upgrade?

To: Michael Watkins who wrote (369)	1/20/1999 5:44:00 PM
From: Platter	Read Replies (1) \| Respond to of 600

Thanks Wiz,wonder if we will see teens before bottom?

To: Michael Watkins who wrote (369)	1/20/1999 7:24:00 PM
From: Wizard	Read Replies (1) \| Respond to of 600

>>it looks like the numbers are ok but the mix of license & service revenues is trending negatively. Can you elaborate on your comments? sure. dctm gets revenues from consulting/implementation (services) and selling license revenues, the mix is often analyzed to show if the company is making its sales goals comfortably or not. analysis of this as well as looking at accounts receivable is very useful for software companies. i think dctm made/slightly beat its quarterly estimate of $37.4mm in revenues and $.24. My thought is they do $.24-.25. If they do $.24 and don't sound confident on the conference call and license revenues are light and forward license revenue guidance is reduced, the stock will open in the 'teens on friday. if they do $.25+ and say the outlook for license revenues is unchanged, the stock will likely have a relief rally up a few pts and then probably fade as software stocks are being cycled out of in favor of semiconductors and pc-related companies. unless they let analysts raise estimates and sound very bullish, there isn't much upside in this stock and still some decent downside. therefore, i wouldn't buy this stock.