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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel? -- Ignore unavailable to you. Want to Upgrade?

To: Benny Baga who wrote (5333)	5/6/1999 8:23:00 AM
From: Sam Biller	Read Replies (1) \| Respond to of 20297

Here are some highlights from the SalomonSmithBarney morning notes, dtd. 4/29/99. IMHO, if you ignore the hold rating, this is a very bullish report notwithstanding my disagreements with some of Mr. Zandi's conclusions. It appears that Mr. Zandi is waiting for the appropriate moment to upgrade the stock from a hold to a buy. Unlike Crafty, he does a complete and somewhat objective analysis of CheckFree's business model. In-line 3Q'99, Internet positioning drive the valuation. Salomon Smith Barney Thursday, April 29, 1999 --SUMMARY:--CheckFree Holdings Corporation--Electronic Commerce * 3Q99 was in-line with guidance, slightly below our expectations * No evidence yet in the numbers of accelerating adoption of Web Banking How he makes this claim is beyond me! * Company continues to strengthen its leadership position in electronic bill presentment and payment * We are downwardly revising our 4Q'99 EPS estimate from $0.09 to $0.04, FY'00 from $0.57 to $0.24 Later in the report he sights slowing growth in software and investment services for the reduction in estimates. * Although the market continues to look past near term malaise, we maintain our 3-H rating Our 3H rating has pointed to near term concerns about the company's ability to achieve its financial targets. And the company's results over the past 2 quarters clearly validates our concerns. However, as the market has made abundantly clear, it is willing to looking past the near term, to the potential of what the business may become. Nevertheless, even in light of this reality, we are maintaining our 3H rating based on a belief that much of the upside is already reflected in the stock. Estimates Reflecting slowing growth in software and investment services, we are downwardly revising our 4Q'99 EPS estimate from $0.09 to $0.04, FY'00 from $0.57 to $0.24. Note these estimates do not reflect incremental upside from the company's previously announced portal distribution deal. If the portal deal is launched as scheduled, CKFR should get a top line and EPS boost in the second half of its fiscal 2000. To view the complete report, you can register for a free trial to SalomonSmithBarney research at --> smithbarneyresearch.com -Sam