SAP A.G. Message Board - Msg: 5780942

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Technology Stocks : SAP A.G.

SAP 247.35

+0.6%

Dec 11 3:59 PM EST

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To: deeno who wrote (2565)	9/17/1998 10:23:00 PM
From: Ray Rueb	Read Replies (1) of 3424

RE: are German accounting rules less stringent than the US? << Just Curious- What makes you think that the German accounting rules are less stringent then the US. I had always heard the opposite. >> I think their rules are perfectly fine. The problem is, CHANGING FROM THEIRS TO GAAP. I believe they are allowed to recognize certain kinds of revenue before GAAP does. Result: I expect a one-time change-over "charge" against revenues to slow recognition. NOTE: I am not an expert, just a computer geek with an accounting minor. I FORESEE HUGE DOWNSIDE RISK IN THE CHANGE-OVER. What do you think will happen to stock price in this market if SAP announces 40% growth instead of 60%? I would think that would trigger a 40% GAP DOWN IN PRICE. Am I saying everyone should sell everything and run for the hills? NO, NO, NO!!! What I am saying is: If you have some profits in SAP, take them (or at least get out your initial stake and let the profits ride). Remember, I love SAP, and I wish I could get a job with them. I am, however, VERY BEARISH ON THE STOCK PRICE for the short term due to the aforementioned risks. I am currently short 75 shares (just to show my conviction). I will go long after earnings have done their thing. Good luck to all, Ray

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