Thanks for the info. I am fairly well intuned into SAP and what's happening with them. After the announcement, the price in Frankfurt did not go anywhere, again, quite possibly because the premium was already built into the price. I expect the price to slide some in Q3, because of the flat forecast. Q4, if they close some major deals, will prop them up for 2nd half '97, but short of a couple of blockbuster deals with NEW customers, it'll probably stay flat.
If you are in for a long haul, then just keep on buying regardless of short term price fluctuations. Expect the price to take off when the stock gets listed in US, providing that they sustain 25%+ annual growth.
The news about listing on US exchange (I keep hearing it will be NASDAQ) were put in the press release for 2 reasons:
1. To spur some institutional buying by US money funds in advance of SAP listing in US.
2. To attract/keep talented employees with a stock options "carrot". Keep in mind that unlike the rest of corporate America, their US management team does not get the #1 enreachment tool in US - price favorable stock grants and options. Same goes for their employees. Here in US, a steady supply of stock options and grants can provide quite a supplement to the salary or even a retirement nest egg for regular employees. For top level managers, it may mean early retirement in the "rich & famous" style.
Just my humble $0.02 worth. |
