The fact is that SAP trades at a SIGNIFICANT premium to other stocks in its peer group.
Growthvalue, I think it should, because it is a "Gorilla" to Peoplesoft's "chimp". I have more trouble justifying its PE compared to Microsoft and Cisco.
I, and most of us on this board, expected an immediate rise when Sap listed on the NYSE. How much of its failure to due so was due to market conditions, how much to "sell on the news", and how much to fundamentals, God only knows!
The more experience I get with riding these "techs", the more I see "sell on the news" as a good way to make money. Look at AOL since the earnings report, and look at Microsoft and Intel right after the introduction of "Windows 95". It would not have worked with Cisco this time, but I would not have sold Cisco. I haven't made up my mind. The difficulty with timing the market is that it is a "slippery slope" into becoming a day trader. Nothing wrong with that if you want to do it. I don't think I want to gamble that much!
LindyBill
|
