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Technology Stocks : Sterling Commerce (SE) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Howarth who wrote (130)	2/5/1999 2:08:00 PM
From: Trooper	Respond to of 341

I tend to disagree with you Bob. He came across rather well, and made it perfectly clear, to at least me, that the future looks as bright as ever! My guess is we get back to the $40.00 range in no time!

To: Bob Howarth who wrote (130)	2/5/1999 3:27:00 PM
From: Turs	Read Replies (1) \| Respond to of 341

Yeah, those are the drawbacks of a CEO willing to speak "off the cuff". I would still prefer that a company be willing to share their "unofficial" thoughts and provide some specifics when asked as opposed to sticking strictly to the script. I figure in the long run, if the company puts up the numbers, the stock will take care of itself. So, what didn't the market like? - company really reported .328/share, not .33 - lower tax rate contributed another 2/10 of a cent per share (non-operational) - even with lower overall revs than expected, SGA and R&D were much smaller as a percentage of revs than year ago period, indicating they held back to help in making the quarter (contributed 1-2 cents, which is a lot) - rate of R&D capitalization a little high, adding another couple tenth of a cent - product revs light, which reduces visibility for services revs Put that all together, and it was a typical SE quarter, strong absolute performance, but a sloppy quarter in terms of achieving the guidance they set for the Street. I am a holder of this one, but had purchased below $30 and sold half at $43, primarily based on the sloppiness these guys usually display. Hard to argue with 20X calendar '99 EPS, but I would probably wait anyway for an even cheaper opportunity, especially consider that the overall market seems to be out of steam. Turs