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Technology Stocks : Banyan (BNYN $8.75) as an internet play -- Ignore unavailable to you. Want to Upgrade?

To: brk who wrote (707)	3/9/1999 11:39:00 AM
From: Michael Seymour	Read Replies (1) \| Respond to of 1006

Has anyone seen a software revenue projection for 1999? Obviously Network Services and Switchboard are doing well, but if software revenues are cut in half in 1999, BNYN might actually post a total revenue decline for 1998. The Microsoft alliance might have more of an impact on software revenues than we think as we used to compete with them. In addition, we are adding 500 people per the press release to support the Microsoft initiative- that's $3-$4 million in additional costs! BNYN only posted net income of $1.2 million in 1998. I think that the company is still window dressing Switchboard, and that it has to be spun off to shareholders. I don't see how the Board of Directors could come to any other conclusion. I think $8 is a bargain as BNYN earned $0.04 per share in the fourth quarter. If you believe that they will earn $0.15 to $0.20 in 1999, a P/E of 40 to 53 is fairly reasonable given the upside potential.