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Technology Stocks : OBJECT DESIGN Inc.: Bargain of the year!! -- Ignore unavailable to you. Want to Upgrade?

To: GUSTAVE JAEGER who wrote (2738)	2/12/1999 9:51:00 AM
From: Bob Trocchi	Read Replies (3) \| Respond to of 3194

Gustave/Damien... Q Report I see a number of very interesting and positive results in the numbers. Not being an accountant, I would love to have someone else take a more detailed crack at this however, this is what I see. Gross Profits as % of total revenue Q over Q increased to 82% vs. 76%, Yr. over Yr. 80% vs 78%. I believe they can get to closer to 85% gross profit with continued increase in license revenue. Sales/Mkt. Exp. as % of total revenue Q over Q decreased to 49% from 66% and for the year, decreased to 49% from 53%. Again, I would expect further decreases in Sales/mkt. expenses as license rev. continues to increase. Just have to love that leverage. Profit as % of total revenue Year over yr. increased to 7.7% from 1.7% 1999 If profits can be increased to say 8.5% next year and lets expect a 50% growth in Revenue, that would amount to $10M in profits an $0.30 eps. This is close to Damien's numbers on the profit side. IMO, this is the very least we must expect if we believe that ODIS has such a lead in an emerging market sector. With a 50% growth, and I agree with Damien that this is needed at this stage I would expect to see a P/E of 50 (Actually I would love to see a P/E of 100!!!). This would translate to a 12 month target stock price of 15! Lets dream on. Bob T.