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Technology Stocks : Recent Peoplesoft Weakness (72 1/2 to 66)
PSFT 0.00010000.0%Oct 29 5:00 PM EST

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To: Joe See who wrote (72)12/13/1996 12:09:00 AM
From: Clay Cunningham   of 116
 
I have to go with the facts that I have. SAP has three times more
customers--either its software is better or PSFT's lacks good
salespeople (or both). Numerous comparisons have been made
about the two. Most of the time I hear that Peoplesoft lacks
application logic on the server. Regardless, with the enormous
amount of competition that will enter this field, PSFT will get washed
away--profit margins will get so low that PSFT may be able to keep
paying its employees decently but there will be nothing for
shareholders. Right now PSFT is in the top three and eeking out
small profits each quarter. but its not Peoplesoft's fault that its stock
price got bid up to high. It's a decent company but unfortunately
the software business is too competitive for long-term success
stories--companies with PEs over 100. Good Luck.
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