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

To: Edwarda who wrote (4658)	4/6/1999 9:51:00 AM
From: Jim Fraser	Respond to of 6021

I think we could see one more leg DOWN before we put in reverse course slowly climb back to old levels. If we were going higher we would have done it already. You are not going to get much better market conditions then we have had recently. Get ready to pounce on NETA on the next dip.

To: Edwarda who wrote (4658)	4/6/1999 10:13:00 AM
From: Chuzzlewit	Read Replies (2) \| Respond to of 6021

Maybe so. That might explain the precipitous drop of a few weeks ago. I would think that if Larson were savvy he'd get out ahead of this issue by preannouncing. Larson's perception among investors is none too positive, and maybe he figures the a preannouncement would would tarnish him further. Maybe he is hoping that a resolution of the SEC mess will provide a sufficient smoke screen to allow him to get this past the investors. Clearing up the SEC mess may go quite a ways in restoring some confidence in the company. Alien's friend, Fat Herb, has been an unrelentingly critical-- and I believe unfairly so-- of the company's accounting and SEC imbroglio. Only I am fairly critical <G>. I also wonder what immediate impact Melissa may be having on sales right now, and I cannot escape thinking that the outcome of Microsoft's legal battle looms large. Just a bit of naive arithmetic (I'm too tired to really think). Suppose, for example, that NETA comes in a bit light this quarter -- say $.45. Let's also suppose that it can grow it's profits at 20% pa. That means that NETA is currently selling at less than 15x the next four quarters' earnings using $.45 as a base (.47 + .49 + .52 +.54 = $2.02). By comparison, the S&P is selling at roughly 27 times next year's earnings which are expected to grow at around 9%. Life can be very confusing at times. TTFN, CTC