CNTR Just sent out by a mailing list. I am on it.
Subj: Re: CNTR
Date: 3/2/99 12:29:55 PM Eastern Standard Time
From: editor@ANALYSTGROUP.COM (Editor *)
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To: INVESTOR-LIST@PEACH.EASE.LSOFT.COM
******Undervalued Dog****** Volume 4, No.5, March 2, 1999
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ANALYSTGROUP.COM Initiates Coverage of Centura Software Corp.
Initial Recommendation: STRONG BUY
Centura Software Corp. (NASDAQ: CNTR)
Industry: Software and Programming
Recent Price: $1.00
Daily Average Volume (3 Month Avg.):83 K
Market Cap: $29.6 million
52-Week Range: $0.875-3.00
Outstanding Shares: 29.6 million
Active Float: 16 million
98 Revenue: $53.5 million
98 EPS: $0.08
Projected 99 Revenue: $79.3 million
Projected 99 EPS: $0.22
Current P/E (1998): 12.5
Forward P/E (1999): 4.35
Industry P/E: 53.23
Price/Book: 4.3
Industry Price/Book: 13.8
Price/Sale: 0.48
Industry Price/Sale: 17.0
Debt/Equity (MRQ): 0.00
Industry Debt/Equity: 0.08
% Owned Institutions: 11.9
% Owned Management: 45.9
Insider Trend Index: Positive
Short Interest: 181. K
Recommendation: Strong Buy
Target Price: $5 to $6 for next 6 to 12 months
BUSINESS SUMMARY AND CORPORATION BACKGROUND: Centura Software Corporation
(the "Company" or "Centura"), formerly Gupta Corporation, provides a suite
of products usable by application developers to build and deploy component
based distributed business applications. Centura products include an
embedded database that scales from Smart Cards to the Web, and application
development tools for Windows and Web clients. Centura has 19 offices around
the world, in North America, Latin America, Asia/Pacific, Europe, the Middle
East and Africa. All current Centura product offerings are Year 2000
compliant.
TECHNICAL ANALYSIS: The stock price was over $3 last May. Since then, the
price has declined to the current level. Technical analysis suggests that
there is a strong technical support in the range of $1 and the stock is
extremely oversold. Bollinger Bands strongly tighten to the average,
indicating that sharp moves of the price will occur. On Balance Volume has
started to head in the opposite direction to the stock price, suggesting
that direction of the price will be reversed.
SUMMARY: Web applications, which are enterprise business solutions which
use Web technologies to provide distributed access, must deal with a myriad
of different platforms, protocols, and operating systems. Born from this
complexity are application servers and development tools which help
companies take advantage of all the Web has to offer. The incredible demand
for Web-enabled applications has created an intense competitive environment,
and key market players must utilize all available strategic information if
they wish to compete in the Web application software industry. In a highly
competitive market, companies may no longer rely on antiquated system
architecture. Instead, the shift to application servers is imperative to
industry survival. Companies must innovate or seal their fate in the
marketplace. A primary market driver for the Web application market is the
ability of Web-based applications to reach new customers. Conversely, a
major challenge presents itself in a lack of established standards among Web
application servers. Web Application Server Software and Development Tools
offers successful strategic suggestions on how to not only integrate
changing technology, but also stay ahead of the competition. This is what
CNTR is doing now.
On Nov. 2, 1998, CNTR announced the launch of its new Web site (http://
www.centurasoftware.com), demonstrating the company's commitment to building
a community for developers to congregate on-line, solve problems and
exchange information. Centura's new site provides a robust and efficient
forum for developers to communicate with other developers and Centura
employees around the world who are implementing solutions using embedded
databases, application development tools and the Web. The site is divided
into specific communities and registration is free, providing access to
extensive code and development information.
With this complete re-design of the Web site, the company's developers and
partners now have an invaluable network of brainpower and insight through
peer-to-peer communication and access to the latest product enhancement and
upgrade information. Our new Web site offers this support and centralized
technical information to maximize the efficiency for developers who use the
Internet as their primary vehicle for gathering information to overcome the
ongoing challenges associated with development. The new site places critical
information two clicks away from the user at all times, by employing a clear
and concise navigation structure. The site has been completely re-engineered
with respect to graphics, branding, content, technical and conceptual
elements. For example, the Developer's Library portion of the site includes
code for CTD (Centura Team Developer) which is Centura's 4GL, object-
oriented development tool, designed to maximize a developer's investment in
developing business logic code. The launch of this website will
significantly help the company reduce its operating costs.
The company aggressively recruits marketing whiz in the industry. We
believe the company will ultimately resolve the marketing problem of its
products, which is key to future of the company. The company has superior
products according to industry analysts, but they lack marketing tools and
resources. Now we feel that the company finally puts everything together.
We expect the company will continue to improve its net profit margin from
current 4% to 8% for next 12 months. Therefore, our target price is $5-$6
next 6-12 months.
CONTACT:
Centura Software Corporation
Kathleen Sheehan
975 Island Drive
Redwood Shores, CA 94065
Phone: (650) 596-3400
Fax: (650) 596-4900
Company Web Page: centurasoft.com
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