PSFT - Fiscal 1998 - Discussion for the next year Message Board

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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year

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Oct 29 5:00 PM EST

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To: space cadet who wrote (2551)	10/7/1998 10:59:00 PM
From: Richard Tsang	Read Replies (1) of 4509

I have always liked this company but was reluctant to buy because of valuation reasons. After this correction, I did some more analysis and apart from the strong fundamentals, I also applied the demand and supply rule, which convinced me to get in: 1. The stock is now in the S&P 500 index, which will create demand for the stock. 2. Total outstanding common is 230.4 mil shares, institutions own 51-60% (depending on data source)and insiders own 36%, leaving only a very limited shares available to meet the demand. 3. Unless we see substantial decrease in insider ownership, the supply for this stock will continue to be tight as the index funds will need to increase their holding, a force enough to offset the unloading by the other fund families. Thus further downside is limited. 4. PSFT is a great company and has not seen its peak yet. Should be a core holding for all. The demand and supply rule says that the price will go up. Just my own opinion. RT-Just started owning some PSFT

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