Interesting article. I would definitely not go long on this stock. I think a better quote from this article would be "Installing SAP's R/3 system has been described as the corporate equivalent of root-canal work." SAP's software functionally is good, but technically quite poor, and very inflexible. It sells by inertia, instead of by the quality of its products. It is the safe bet. It is like buying buying IBM in the '80s. Over time, however, the nightmare's of SAP implementations will affect this company. Smaller more nimble companies will beat SAP, at the game SAP invented.
Also, how many more fortune 500 companies can buy SAP? Definitely their is limited market. Can SAP go midmarket, with a SAP Lite? Think again.
If you are a long term investor, don't buy this stock. It is way overvalued, and it now has to compete on a US exchange, responding to smart investors and using a US accounting model. While the stock may enjoy a few months on a US exchange, the party won't last. |
