Neil,
The company seems to be chugging along well. Sales and earnings growth seem very strong. The only question is what the market will do with PEGA and other high growth/high PE stocks. IMO, the stock is reasonably priced for its growth, but many stocks have gotten hammered, so its a dicey call for the short term. Longer term, the strong growth underway now will pay off handsomely. My feeling is that this stock will likely trade in harness with Vantive, Siebel, Scopus, etc. If I were to hazzard a guess, I'd imagine that it may be stronger than Siebel and Scopus; I suspect perhaps a bit weaker than Vantive (stricly due to its trading at a higher PE--Vantive is a great bargain here). I would expect considerable profit-taking as nervous investors cash in on some of the advance. Eventually, the strong fundamentals will carry the day. But by then, many new people will be holding the stock. I'm just putting away my shares and will buy on dips. I don't expect them to last for long.
Good luck,
Baird |
