Linux Today: Linux News On Internet Time.

CNBC: Red Hat Rising Off Bottom

Jun 03, 2000, 22:33 (1 Talkback[s])

"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."

Complete Story

Related Stories: