While boxing the position with a short is a good idea, my long term investments are in my Keogh account, and as you probably know, you're not allowed to short there. As to your question about my opinion of the stock, I've found over the years that analyst's prognostications about the future earnings are pretty poor, so I tend to ignore them. I just got a report from Dean Witter on the percentage of analysts' correct earnings predictions, and it was pretty dismal. As a financial analyst myself, I know how difficult it is to properly read the tea leaves to determine the future earnings of any company.
What I see in PSFT is a lot of new product in the pipeline, excellent product, and good customer support. I'm especially excited about the prospects for their Japanese products, academic software, and the potential for huge sales to the US government. Given these considerations, I'm quite bullish on the stock long-term. If it should drop to the mid 30's, I'll be buying more.
Good luck,
Paul |
