Except that it s very difficult to tell if a valuation is modest when earnings projections are subject to drastic downward revision. For example, at today s consensus earnings estimate of 72 cents for 2001, Nortel Networks trades at 27 times projected 2001 earnings per share. It s bad enough being an Internet company these days. With Oracle and Tibco reporting that they re seeing a buyers strike as corporate customers postpone all software purchases, I expect that things will get worse for Broadvision before they get better. Analysts have chopped estimates for the March quarter to 2 cents from 5 cents a share but there s still a good chance, in my opinion, that the company will miss projections when it reports in April.
Guidance is likely to be extremely depressing too.
That will, I believe, mark the bottom for the company s fortunes, however. And by the September quarter I think software companies, including Broadvision, will be reporting an end to the purchasing lock down at corporate customers. Search MSN Money tips MSN Money's editorial goal is to provide a forum for personal finance and investment ideas. Our articles, columns, message board posts and other features should not be construed as investment advice, nor does their appearance imply an endorsement by Microsoft of any specific security or trading strategy. An investor's best course of action must be based on individual circumstances.