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

To: AlienTech who wrote (4637)	4/5/1999 11:20:00 AM
From: AlienTech	Respond to of 6021

Maybe NETA is gaing some that market share in the scratch and sniff business... Double profits from trading ISSX and NETA. by: beefgiver 5693 of 5738 If you have the chance to compare the two companies from a fundamental and technical standpoint, you will know that there is a unique situation to make huge profit by trading in both ISSX and NETA shares. First, let's talk about ISSX. Since the company's secondary offering in 3/98, the share has more than tripled. During the period, insiders benefited by selling the shares. ISSX pened at around 89 1/2 on April Fool day. The spike is caused by peculation that company will anounce a good news. The good news urned ot to be a 2 for 1 stock split. Big deal! The stock closed below $80 the same day. From a technical standpoint, if ISSX failed to hold above the $78 support level, look for the stock to fall to the next support level at $71. If it breaks the $71 level, there is no clear floor at this point. Insider has been selling since the secondary offering in 3/98. From a fundamental point of view, ISSX is being sued by NETA and the outcome may affect the company's revenue growth significantly. See 3/28 news from Barron's for detail information. ISSX has not made a penny to date but it is currently valued at 15 times its revenues, a huge valuation that spells trouble. ISSX has a long way to catch up with market leader NETA. On the other hand, NETA is underpresssured recently due to 2nd qtr earnings concern. NETA beats earning estimates in the 1st qtr and is likely to do it again. The recent bearishness is good news for potential buyers. The short squize is about to happen. Look for NETA to trade above the $34 resistent level before reaching the next resistent level at $42. Given NETA's market leadership position, its surrent low valuation limits it downside risk with huge profit potential. If you see the point, short ISSX if it falls below $78 and buy NETA at current level. When you do made the money, just remember this post. Good luck.

To: AlienTech who wrote (4637)	4/5/1999 11:22:00 AM
From: AlienTech	Respond to of 6021

AXNT / NETA by: bsvasan 5717 of 5738 Though I have traded NETA quite number of times I am kind of skeptical to go longer term on it till NETA resolves with SEC on the new set of rules. I know NETA has been unfairly hit as the new set of rules are applicable to every software company that had made acquisitions and wrote sizeable part of the acq. cost as in-process r&d. But I did buy into Axent after the 38% two day slide. Axent is getting hit in a very similar way as NETA did and investors are viewing Axent with NETA as a precedent. Though both AXNT and NETA are appealing at these levels, I chose to go with AXNT this time for the foll. reasons. AXNT acq. of Passgo is relatively small deal (less than 50 mln) and Axent will write-off 30% of the acq. cost (around 15 mln) over a period of 3-5 years. ML research report is bullish on the acq. and views the write-off as very conservative. Axent's track record has been exemplery, last qtr the ASP increased in both direct and indirect channels with the deferred revenues increasing sequentially by 2 mln. But for all I know Axent may move sideways between 20 and 26 as NETA is doing now. Software sector is kind of jinxed now but may be this is presenting tremendous buying opportunities (BMC,CPWR,NETA,AXNT...). JMHO.