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Technology Stocks : Entrust Technologies Inc (ENTU) -- Ignore unavailable to you. Want to Upgrade?

To: Wizard who wrote (101)	2/28/1999 10:06:00 PM
From: giantswin	Respond to of 1205

I also like vrsn for the record. Not at current valuations however. I agree that long term their model will allow them to make higher profit margins than entu. Entu is selling a widget, vrsn is selling service. I expect entu to gradually start shifting their model. I think due to the lock up ending entu is very undervalued right now.

To: Wizard who wrote (101)	3/7/1999 9:29:00 AM
From: Dave Doriguzzi	Read Replies (1) \| Respond to of 1205

Wizard, We own/follow many of the same stocks; DCTM, HYSL, ENTU, BVSN? So by default I must respect your opinion. However... Let's examine your comments on ENTU: >Microsoft is an investor< They are also an investor in many, many other companies. Specifically, I have owned Lernout and Hauspie (MSFT owns 6.6%) and made a great deal of money but alas it has fallen from $68 to $29 and faces stiff competition from IBM and Dragon which will have an IPO on March 15 I believe. >Netscape committed to Verisign< True but I didn't see VRSN with a Compaq, Lucent, Checkpoint or Nortel/Bay release. >Intel is an investor< Same as above. Intel also owned Systemsoft (9%) which has gone from a high of $36 to .50 cents. >Network Associates views VRSN as an ally< NETA also announced a strategic relationship with ENTU at the same time. Check out techweb.com search for Entrust and look toward the end of 1998. >Network Associates views ENTU as competition< Same as above >Security Dynamics is using VRSN as its engine in its KEON product< According to my research SDTI is way late to the game and KEON is simply a stopgap that is not garnering much support. Again check out techweb I see the major difference between VRSN and ENTU being: 1) Outsource vs. software sales model 2) VRSN has 25 mm shares o/s vs 42 mm for ENTU 3) VRSN has been growing faster I used to sell outsourcing so I understand and am not bothered by the differences in business models. I think each will do well. On competition it seems that VRSN and ENTU are each the gorillas with different business models (not many others in this space that are focused). Your thoughts? Finally, you state that the outsourced model is better because a company doesn't have to keep this kind of core competency on staff. How about changing the pardigm a little and saying that in the future all companies particulary ecommerce companies will have to have this type of expertise and if anything VRSN's business model may be the one at risk? Just thinking out loud. Comments?