Gee whiz melissa, why are you so threatened by someone offering a countering viewpoint? Are these threads just supposed to be cheerleading?
Do you want ttf off of the sebl thread since he offers a differing viewpoint?
GC is right, the users conference and the analytical applications announcements won't make a difference. Analytical applications are a growing area, no doubt, but that's is not the relevant question.
Here is the relevant question: Are analytical applications sold into the PSFT installed base a large enough opportunity to offset the declining growth rates in the core erp/backoffice business? probably not.
resources in IT organizations are shifting from the deployment of erp/backoffice systems (work that was done largely in the 1994 to 1998 time frame) to new areas such as front office, business intelligence, e-commerce and supply chain.
PSFT is a great company and well run. however, it will be a challenge to find large enough opportunities to offset declining growth rates in the core $1 billion plus annual business.
While they may be investing in those new areas, they've got a massive installed base to keep happy, so i would argue that a large percentage of their R&D has to be devoted towards incremental upgrades of the core technology, not new areas. they could have (and did) use their inflated stock to make acquisitions to grow in new areas, but with the stock at these levels, acquisitions are harder.
I will also tell you that investor sentiment has changed for PSFT and the other erp players (except perhaps SAP which will last a little longer) they want out of the erp/backoffice sector and will use any foolish retail buying and market rallies to help buy their way out of the stock.
Great company, poor stock.
GC stick around, the cheerleaders hate you, but many lurkers welcome dissenting opinion, it's what makes these boards relevant.
TD |
