Oracle, Internet Security Systems, Macrovision and Neomagic - TheStreet

Oracle, Internet Security Systems, Macrovision and Neomagic

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A selection of some of the most intriguing tech stock ideas on the Web. The items presented do not represent the views of

TheStreet.com

; rather, the collection is offered as a service to our members who may be scanning the Web for stock-related information.

Oracle

Adam Lashinsky

Oracle

(ORCL) - Get Report

has made a nice comeback since mid-January, when its stock plunged to around 18 on surprisingly bad earnings news. On Friday, it was trading at 28 1/8.

San Jose Mercury News

columnist Adam Lashinsky believes investors overreacted to last quarter's bad news, but he doesn't advise jumping back in at the current price. "Just because some overreacted when Oracle stock traded for 18 doesn't make it a steal at 30," he says.

On the plus side: The slowdown in growth of Oracle's database sales, now about 13% annually, is being mitigated by a healthy 30% growth rate for applications.

But Oracle still faces formidable challengers in both arenas:

Microsoft

on the database front and

PeopleSoft

in applications. The lesson to learn from Oracle's recent price swing, says Lashinsky, is to pay less attention to CEO

Larry Ellison's

"ravings" and more to Oracle's business results.

More information can be found at:

www.sjmercury.com

Internet Security Systems

Steve Harmon

Internet Security Systems

(ISSX)

is the latest hot IPO. It went public March 24 at 22, and now trades, as of Friday, at 43.

Though network security is a vital sector, analyst Steve Harmon says the stock has gotten a little ahead of itself. It is trading at 28 times estimated 1998 revenue of $22 million. Firewall leader

Checkpoint Software

(CHKPF)

trades at 15 times forecasted 1998 sales of $100 million. "ISSX, with 20% of CHKPF revenue, commands a value of 39% of CHKPF. Seems a little 'hacked' itself," says Harmon. At a more moderate 20 times earnings, "we think Wall Street could perhaps sleep a little sounder," he adds.

For a

TSC

story on Internet Security Systems' IPO, please click

here.

More information can be found at:

www.internetnews.com

Macrovision

Eric Efron

There is no shortage of markets for the antitheft technology developed by

Macrovision

(MVSN)

for video and audio programs.

The company's software is used in the home video, pay-per-view, cable, satellite and consumer multimedia markets to prevent illicit duplication or reception of audio and video. More than two billion videocassettes have been encoded with Macrovision's anticopy process, which adds electronic pulses during duplication that degrade the video signal, rendering the program unwatchable.

USAA Growth Fund's

Eric Efron sees 30% annual earnings growth for the next three years as demand for digital home entertainment grows.

More information can be found at:

www.techstocks.com

Neomagic

Herring.com

A strong buy recommendation from

Morgan Stanley

should give new life to shares of

Neomagic

(NMGC)

, says

Herring.com's

Peter Henig. The stock, which went public in March 1997, rose as high as 26 1/8 last July, but has been stuck between 17 and 19 most of this year. On Friday, the stock was trading at 19 3/4.

Henig notes that Morgan semiconductor analyst Mark Edelstone has raised his 12-month price target to 30 from 26 due to strong demand from notebook PC manufacturers for Neomagic's graphics accelerators, which are designed to bring the same kind of power to laptop PCs that desktops now enjoy. Strong sales, which grew by an average of 37% per quarter last year, are expected to continue, he says. The company's customers include just about every major laptop manufacturer, including

Acer

,

Compaq

,

Dell

,

Gateway

,

Hewlett-Packard

,

IBM

and

Toshiba

.

More information can be found at:

www.herring.com