“Linux software-maker Red Hat has plummeted in 2000 as costs
have risen much faster than sales. At its current price, however,
IDEAglobal.com thinks Red Hat’s worth a second look. It’s still a
speculative play, but its valuation has become much more
sensible.”
“IDEAglobal.com thinks the Microsoft factor shouldn’t be an
investor concern right now. Red Hat shares often react to news from
the government’s antitrust case against Microsoft. That’s because
investors think Red Hat will be able to grow faster if Microsoft’s
dominance is undermined by a break-up of the huge software
firm. But speculating on the outcome of this case isn’t as
important as looking for signs of Red Hat’s sales growth,
especially in the corporate sector.”
“Red Hat will be issuing first-quarter earnings results at the
end of June. IDEAglobal.com thinks investors should look for strong
sequential sales growth and news sales to large corporations as
signs Red Hat’s Linux OS is gaining popularity. Over the
short-term, our technical analysts feel Red hat shares have reached
a bottom and will soon rise.”