Focus Stock of the Month
Once a month we will provide a free analysis of a company from our Amateur Investor Index Top 100 which we feel is a stock to watch.
Our selection for November is Netegrity Inc. (NETE)
Fundamentals:
|
NETE |
4Q 99/98 | 1Q 00/99 | 2Q 00/99 | 3Q 00/99 |
|
% Increase in Quarterly Sales Growth |
+183% | +228% | +298% | +359% |
|
% Increase in Quarterly Earnings Growth |
NA | NA | NA | +118% |
| % Increase in Quarterly Net Profit Margins | -21.3% | -9.0% | -1.0% | +6.7% |
Earnings Outlook:
Estimates for the next two quarters and next two years:
4Q 00/99 |
1Q 01/00 | 2000/1999 | 2001/2000 |
| E .06/-.04 | E .07/-.02 | E .08/-.38 | E .46/E .08 |
| +250% | +450% | +121% | +475% |
NETE is a provider of software and services that manage and control user access to Web-based e-commerce applications. The Company's SiteMinder product is part of the software infrastructure that is used to build and manage an e-commerce Web site commonly known as a portal. SiteMinder manages the complex process of identifying users and assigning those users entitlements to multiple e-commerce applications on a company's portal. These assigned entitlements determine what information a user can see and what transactions a user can perform on the Web site. SiteMinder enables its customers to centrally control access to e-commerce portals requiring secure log-in, while distributing the administrative responsibilities to the most appropriate parties.
Ratings as of 11/1/00 include:
EPS: 68 RS: 98 ACC/DIST: A, GROUP
STRENGTH: 40
Industry Group: Internet-Network Security/Solutions
Shares
Outstanding: 29.4M, Float Shares 27.1M
Institutional Ownership: 69%
Insider Ownership: 8%.
Average Daily Volume: 391,000 shares.
Next Earnings Report: 1/28
NETE broke out of a Cup and Handle pattern in September but pulled back when the markets corrected in September and October. However NETE has held up well recently and is beginning to develop a small base near its 52 week high. If NETE can break above $80 on good volume there will be no overhead supply to inhibit the stock from making new highs in the future.
NETE is forecast to have strong earnings growth over the next two quarters and continue this trend through 2001. As a result this maybe a company to watch in the months ahead.
***The Focus Stock of the Month is our opinion of a company to watch in the future. This doesn't mean it's a recommendation to buy the stock.***
