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Technology Stocks : SAP A.G.
SAP 240.02+0.9%Nov 26 3:59 PM EST

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To: Jay8088 who wrote (1372)7/10/1998 3:45:00 PM
From: mauser96  Read Replies (1) of 3424
 
Even though I think this is probably a buying opportunity, we may be putting the cart before the horse when we regard news that results in a price decline as "good news". I'm in the market to make money, and something that leads to a loss is not good news. The exception to this is if you think you are less prone to panic, have a longer investment time span, or better able to interpret the true meaning of the news than the others who are setting the market price. The market dislikes surprises and a few announcements like this will take the bloom off SAP and result in a lower P/E. I'll gamble that it is a one time event. Fortunately most of my holdings are at much lower prices, so that gives me a little cushion. In any case the rather subdued reaction to the news and the price action prior to it indicates that the news leaked, and that market participants think it is not too important.
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