PSFT - A new high. Should we expect more? Message Board

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Technology Stocks : PSFT - A new high. Should we expect more?

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Oct 29 5:00 PM EST

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To: peoplepal who wrote (407)	6/11/1997 1:02:00 AM
From: Chuzzlewit	of 419

Pal, it's my turn to reassure you <G>. Remember what happened lst quarter? The stock jumped from about $35 to $43 in one day after earnings were announced. As I recall, earnings beat analysts' expectations by about 16%. High P/E stock will always attract shorts hoping for an earnings dissapointment. I'd guess that we've been accumulating a lot of short interest lately. I agree, the news is uniformly good, but I do recall from somewhere that one or more 'newsletters' were advocating shorting PSFT because of its lofty P/E ratio. The risks we face are two-fold. As a high beta stock, we assume a lot of market risk, and as a high P/E stock we face the huge risk of an earnings dissapointment. But the upside on this is that a positive earnings surprise (which I anticipate based on all of the news releases), will result in a rapid run-up in price, and perhaps a juicy short squeeze. Maybe the shorts will succeed in dropping the price some, but this will be temporary IMO. Good luck, and keep the faith Paul

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