"Pervasive
Software is a provider of application development and deployment
software that simplifies the development, deployment and maintenance of
Web-based and client/server applications. For the fiscal year ended
6/30/99, revenues rose 62% to $59.4 million. Net income increased 31% to
$3.6 million. Revenues reflect increased market acceptance of the
Company's products. Net income was partially offset by a $1.8 million
purchased research and development charge."
Did you read that last part? "Net income was partially offset by
a $1.8 million purchased research and development charge." Because
of that charge, Wall Street bashed PVSW’s stock price, sending the
price down more than 60% from the mid-30’s to the low teens in one day
(October 22, 1999).
Research and development - that speaks for itself. Where else should
a growing, successful company spend its money?
PVSW has zero long-term debt (most recent quarter [mrq]) and $39.9
million in cash (mrq). This company is solid, experienced, and ready for
the future of Web-based application software. It should be trading in
the upper 20’s. Its current price is the low teens. Need I say more?
