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Technology Stocks : SAP A.G.
SAP 245.14+0.4%12:42 PM EST

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To: A. Fineigler who wrote (2562)9/17/1998 3:49:00 AM
From: Ray Rueb  Read Replies (1) of 3424
 
RE: SAP richly valued at High PE

<< SAP is also very richly valued, at approx. 80x 1998 and 60x 1999 projected earnings. With a projected 99/98 growth rate of approx. 40% >>

My feeling is that they will switch to American accounting rules with this quarterly report and earnings will be down. This will raise the PE even more, PLUS crush expectations.

If this were a normal stock, I'd definitely be shorting right now.

I ABSOLUTELY LOVE THIS COMPANY,
but I got killed in a stock that dropped 50% in 2 days when it announced an earnings report with lower-than-expected earnings.

It is possible German investors could prop-up SAP,
but I think they're getting nervous about Russia.

Good Luck to all,
Ray
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