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Technology Stocks : NEON Systems, Inc. (NESY) -- Ignore unavailable to you. Want to Upgrade?

To: Digitom who wrote (8)	3/7/1999 7:03:00 PM
From: topgun_06903	Respond to of 91

I own HIE(HDIE), and follow New Era Networks. is this company a direct competitor???? HIE has Healthcare area cornered thanx to HBOC McKesson and is now breaking out into non healthcare with third party alliances such as DST, etc..,, and New Era has IBM pumping them. How is NEON positioned???? Thanx!!! TG

To: Digitom who wrote (8)	3/7/1999 8:34:00 PM
From: Vincent Vega	Read Replies (1) \| Respond to of 91

Finally, an IPO with solid fundamentals. After a solid first day of trading, NESY is primed to run this week. Here is a quick recap of the fundamentals: Float 2.7 million Shares outstanding 8.2 million Fully-diluted EPS: 1995 (1.62) 1996 0.14 1997 0.19 1998 0.20 through 3 quarters Revenues (millions): 1995 2.5 1996 7.2 1997 12.2 1998 13.8 through 3 quarters Major clients: American Express BASF Dayton Hudson Deutsche Bank Exxon Merrill Lynch Motorola Office Depot Sears Skandia State of Illinois Texaco USPS Major competitors of Shadow product line: IBM Oracle Information Builders Major competitor of Enterprise Subsytem Management: BMC Software CEO: John Moores, founder of BMC and chairman of Peregrine Systems NESY's strongest quarters have admittedly been the 3rd and 4th. So assuming that revenues and net income are the average for the first 3 quarters (a very conservative assumption), full-year 1998 revenues would be 18.4 million with EPS of 0.27. These roughs estimates would yield a trailing P/E of 93 and a trailing P/S ratio of about 9. These ratios look a bit high, but using forward ratios instead of these trailing ratios make the current price reasonable. This company is legit, and the stock should give us some strong aftermarket performance. Regards, VV