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Strategies & Market Trends : Stock Watcher's Thread / Pix of the Week (POW) -- Ignore unavailable to you. Want to Upgrade?

To: hoffy who wrote (2123)	2/4/1999 7:18:00 PM
From: FatMatty	Read Replies (2) \| Respond to of 52051

I just had to bookmark this thread. Good ideas here. I'll contribute when/where I can. I'm holding ECHO and SBAS only now. PLC - funny you mentioned that. Years ago when I was working at Bear Stearns as a broker's peon, he was pumping this stock to all his clients at the 4 range. It hit 30 like you said, and the rest is in your post. Might be time to get back in. SBAS - software company for web development. I like them because their software uses XML, which I'm learning is the next thing in web development/maintenance language. Here are some summary points plucked from the Yahoo thread which I encourage others to read. A nice base is developing in the 1.5 - 1.75 range. 1) Don't expect positive earnings until 2Q at the earliest and more likely 3Q. This comes as no surprise for most of us. Revenue drain has almost stopped. 2) Look for a series of product announcements during the next two months. Management is visiting with 20 industry, Wall Street and other key players, to spread the word, during the next two weeks. 3) Allaire, and its success is, IMO, a harbinger of what we can expect one of these days with SBAS. Allaire is a complementary technology with StarTeam and the two companies are treating it as such 4) StarTeam 4.0 will be announced in 3/4 week of February. StarTeam.com by the middle of this year. For the uninitiated like myself, Starteam 4.0, combined with SITE technology, creates a dynamite "web based application development" tool that sets an industry standard. It has great appeal to Java developers. Starteam.com will be the best tool for the rapidly growing market for Web site development and maintenance. Companies can no longer afford the time required to develop their own tools and will have to so to the SBAS', off the shelf technology to do the job. Example. It apparently took Victoria Secret over 3 years to develop their now famous website. The competitive reality for the future is the need to develop these kinds of web sites in 3-6 months at the most (you must be from Mars if you don't see the explosive growth occurring in e-commerce) Basically advertising development for e-commerce needs Starbase tools. SBAS technology will enable the developers to meet these shorter time tables. 5) Up til now, Wall Street has been focused on the internet gateway , e commerce etc. companies (Amazon, E-Bay, AOL etc.) However, with the Allaire IPO and the growing awareness and interest developing about the internet, the Street is starting to examine the internet in a broader way and recognizes such aspects as the criticality of the tools to manage this explosive market. As sort of an example is the success of Cisco with their lock on the big router business. SBAS advises that their phone is getting busier and busier every day from inquiries being made by analysts. Some other related IPOs are scheduled in the next few months and if they gain the same attention as Allaire it won't be long before some Wall Street analyst figures out that SBAS is a sleeping giant. 6) About 55% of SBAS stock is held by hedge and similar type funds (I was amazed when I heard this). 7) Serious discussions with a number of potential candidates for equity financing are underway. SBAS is not only looking to minimize the impact in terms of share dilution but, more importantly, view this as an oppportunity to create a very strong and meaningful strategic partnership. My bet, when the news comes out, it will be powerful. 8) The newest three members to the Board have been significant contributors to moving the company forward. This was a significant and positive move made by the company in the last six or so months. 9 ) I checked on what happens to SITE shareholders. No information available except to check with Site management. I assume that there will be some parcelling out of the 750K shares that SBAS paid but not sure. Key for us is that SBAS bought SITE's technology, NOT the company, so the Chapter 11 filing should have de minimus impact on the company. Also, the three best developers from SITE are now on board as new employees of SBAS. Matty