Any idea what the sudden interest in this much belabored company is all about? After a nine month holding pattern in the 11-13 range the stock suddenly soars to 33% to 17 on 14 times normal volume on NO news!
Rumors I heard include:
- Short covering on expectations a good quarter (don't count on it)
- Possible alliance with PeopleSoft
However, I also heard from a reliable source that new software licenses were pathetic this quarter since virtually the entire pipeline was closed in the September quarter to gloss up the annual report. Additionally, I heard that more product development delays will hurt the stock's rebound in FY 1998 for at least two quarters (current FY 1998 estimates are an improbable $1.50).
Big investors NEC and General Atlantic are rumored to be very impatient with the company's slow turnaround. While the product release schedule continues to slip, new competitors have taken a larger share of the ERP market.
Therefore, I am baffled at the recent run up in the stock. I look for a sharp reversal within the next four weeks but am looking for more info....Thanks. |
