http://www.mergerinvesting.com/stocks/WEBX.php

Downgraded by Wachovia from Outperform to Mkt Perform

1.67

Downgraded by Soleil from Buy to Hold
Downgraded by Brean Murray from Buy to Hold

watch

profit

Barron's 2-19-07:

The Santa Clara, Calif., provider of "on demand" software had a huge Q4 and it could be even better going forward.

Many have worried about competition from Microsoft (MSFT), as well as commoditization. But WEBX is "providing reliability and scale that others can't seem to match."

"We see Web collaboration as the 'killer app' over the Internet, and we are the best in class at delivering that service," CEO Subrah Iyar says.

Software analyst Peter Goldmacher of Cowen, calls WebEx "the most interesting company in the software space." He's sticking with his July prediction that the shares could top 60 in the next few years.

IBD pick ---

5 yr. Sales Growth (annualized): +59%
Estimated EPS Growth (annualized next 3-5 yrs): +19%

for tech it's relatively low volatility of rev stream, pretty linear Qs, good FCF roughly equal to EPS, could grow EPS and FCF 20%+ next few years and trades at 22x