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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: AlienTech who wrote (4466)	3/23/1999 10:16:00 PM
From: Susan Saline	Read Replies (1) \| Respond to of 6021

>>>While there is some risk (Q1, Y2K) to the story, we believe at current valuation, upside to the stock significantly outweighs downside. The company is enjoying a very strong product cycle over the next 6-9 months and NETA should move to 60 to 70 by year's end. <<<< I can live with that personal opinion .... tech selloff that will end as Octobers did, when it hurts so bad ya just can't stand it anymore, they'll rebound ... fast and furious. x

To: AlienTech who wrote (4466)	3/24/1999 12:17:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 6021

I find most of the report credible with the exception of two areas: First, Here is a fundamentally sound company ... Given the spate of acquisitions, it would take a superhuman effort to come up with a reliable fundamental picture of the company. And I'm not talking about the problems with the SEC. It is very difficult to assess a company in the throes of massive corporate digestion. I think Edwarda alluded to this problem in a previous post. We believe DSOs will climb approximately five to six days to the mid-90s and to stabilize in this range. We do not find this disconcerting due to overseas sales where closure is longer. While I agree that the increase in DSO is not, in itself disconcerting, the explanation makes no sense. The length of time a deal takes to close is irrelevant to DSO. If cash is received prior to completion of the sale it is treated as a liability ("deferred revenues") rather than an income item. The only time an income item is recognized is when there is revenue recognition. Since the definition of DSO is (A/R)/Sales*no. of days in the period, the time it takes to close a deal is irrelevant. The only relevant factor is the time it takes to receive cash to retire the receivable. TTFN, CTC