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Strategies & Market Trends : CANSLIM - COAST TO COAST -- Ignore unavailable to you. Want to Upgrade?

To: Bruce A. Brotnov who wrote (4611)	4/22/1999 11:05:00 AM
From: Harold	Respond to of 6445

ATEL I have watched ATEL for some time. Bruce could you and All give an opinion on the following: Found on the YAHOO BB "I heard that two large mulit-million blocks of ATEL bonds traded to a STRATEGIC buyer on Friday and again today. This is exactly what happened just before the deals for PCTV and CAI were announced. PCTV and CAI set the floor for the price action, all subsequent purchases per subscriber LOS will be higher (just like in the cable industry). Who ever succeeds in rolling up this industry will land up eliminating a lot of overlapping SGA and ancilary costs. The proforma costs of these acquisitions could be very low after cost savings realizations. A deal is just around the corner. The question is......how much will MCI, Sprint, AT&T or Craig McCaw pay"

To: Bruce A. Brotnov who wrote (4611)	4/22/1999 12:06:00 PM
From: ST Trader	Respond to of 6445

Bruce, Nice call yesterday on PSTA!!! Scott

To: Bruce A. Brotnov who wrote (4611)	4/23/1999 7:09:00 AM
From: Judy Muldawer	Read Replies (1) \| Respond to of 6445

Bruce: Still think PSQL will pop? I own some (at a loss) from years ago. I actually sold the majority of my position at a profit, but held onto a few shares in case it really took off. It did - in the wrong direction. Still hoping for a pop and was glad to see your post, but then was disappointed as it closed down 1/4 point yesterday. Judy

To: Bruce A. Brotnov who wrote (4611)	4/23/1999 12:19:00 PM
From: ST Trader	Read Replies (1) \| Respond to of 6445

Bruce, PSQL looks great fundamentally, however I found some info on why it was downgraded by two firms in Feb!! DLJ **** DONALDSON, LUFKIN & JENRETTE **** DLJ February 26, 1999 PLATINUM SOFTWARE (PSQL: $8.63) * Reducing Estimates and Rating Range: Earnings Per Share 1999E vs 1998 % Chg 27-5 Old New P/E Ratios F1Q $0.05 vs 0.15 -67% (FY:Dec.) 1999E $0.90 $0.70 12.3 F2Q 0.12 vs 0.19 -37% 1998E 0.72 0.50 17.3 F3Q 0.14 vs 0.16 -12% 1997A 0.68 12.7 F4Q 0.23 vs 0.19 +21% Yield: % Market Cap.: $375 mil. 5-Yr. Growth Rate: 25% Dividend: $ Avg. Trading Vol.(000): 600 Book Value: $ RATING: Market Perf. Change: Down From Buy 12-Mo. Target: $ VIEWPOINT Our main thesis behind a Buy rating on PSQL was our belief that most of the risk associated with the acquisition of DataWorks was priced into the stock. We further believed that once the initial cross-company integration/culture issues are resolved in 1Q, PSQL could begin to show stable and improving quarters through 1999. Recently we began to question these assumptions after receiving evidence of significant turnover among the DataWorks sales force. The company talked about some attrition during its Feb. 5 conference call, which at the time was minimal and isolated to its West Coast operations. We believe there was a recent increase in turnover on the East Coast and we are beginning to question PSQL's ability to achieve our original estimates. DataWorks accounts for at least 50% of the combined company's revenues and this pick-up in turnover will make it difficult for that part of its business to get to plan, at least until the sales force is fully re-built. The turnover is concentrated around one of DataWorks' product lines (Avante) which accounts for about $40mm in license revenues (28% of the total). We estimate that in some regions DataWorks lost nearly half of its sales headcount in the last 4 weeks and we are reducing estimates as a result. Our revised '99 estimates are $279.6 million in revenue and $0.50 in EPS, down from $304 million and $0.72. For 2000, our new estimates are $352million in revenue and $0.70 in EPS, down from $380 million and $0.90. While the stock remains relatively inexpensive, we see few near term positives to drive PSQL higher. We are downgrading PSQL to market performance from a buy and will revisit the story once these initial acquisition-related issues are resolved. We continue to believe that PSQLmanagement will be able to stabilize the business and execute in the middle-market, but near term results will be less predictable.