BEA Systems: Ripe for Activist Picking [View article]
I love technology stocks because I have been involved in software development for 20+ years.
BEAS is a kinda maybe becareful stock. Most software companies that are worth their weight have zero percent long-term debt. NOT the case with BEAS. How come? That makes me cautious before investing - wondering why the debt load - what caused it. When a company has low or zero debt - they can run through the 'tough periods' without much issue. But when they have debt and a tough period (remember what Sept 11th did to technology companies? in Oct Nov Dec and 2002 it was tough - people just put their buying plans on hold - even 2003 was slow) - then it's much tougher to grow and survive.
I will analyze BEAS some more, but need to see some significant insider buying, reduction of debt, and high growth. Waiting on those things....
Software Stocks: High-Risk, Low-Risk and Takeover Targets [View article]
BEA Systems: Ripe for Activist Picking [View article]
BEAS is a kinda maybe becareful stock. Most software companies that are worth their weight have zero percent long-term debt. NOT the case with BEAS. How come? That makes me cautious before investing - wondering why the debt load - what caused it. When a company has low or zero debt - they can run through the 'tough periods' without much issue. But when they have debt and a tough period (remember what Sept 11th did to technology companies? in Oct Nov Dec and 2002 it was tough - people just put their buying plans on hold - even 2003 was slow) - then it's much tougher to grow and survive.
I will analyze BEAS some more, but need to see some significant insider buying, reduction of debt, and high growth. Waiting on those things....