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Technology Stocks : PROGRAMMER'S PARADISE (PROG) -- Ignore unavailable to you. Want to Upgrade?

To: Bart Hoenes who wrote (388)	1/26/1999 1:28:00 PM
From: Zeev Hed	Respond to of 2383

Bart, I believe that PROG is a company in transition, from a "catalogue" mail order company to a hybrid Mail order/internet company. As a catalogue company, PSR may typically be low because of the wrong perception of slow growth. I think that we will see expansion in both the PSR and PE of this company, since they are moving to a "new business model" in my opinion. Rather then sell what "they happen to have" for sale, they are now using the distribution channels they have been building for years through their unique position with professional programmers, a company ready to sell "whatever the customer needs". Once their product offering has been expanded and the transition absorbed (managed), then they can move "back" to seeing "what is that we have for sale" (now expanded drastically through the current strategic move) and start selling these to customers outside their core of professional programers, thus redefining their addressed market to a much broader market. All this being accomplished in a seamless process which assures growth for sometime to come, provide immunity (well, some immunity) from the economic cycle and never exposing themselves to a drastic fall off in sales accompanied by the arch-enemy of business, negative cash flow. Zeev