Hello Mohan. Here;s some very positive comments on i2 from this week's Barrons. You ought to be amused by the comment that if you missed Dell, you can buy i2. The guys answering the questions are technology mutual fund managers. BTW, I am sufficiently intrigued by this to take a position in the stock. I like that it's significantly off it's 52 week high.
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Q: Which companies make sense to you here?
McNamee: We especially like I2, the leader in the supply-chain-management category. It's a business with quick payback. At the end of the day if you use I2 software and your competitor doesn't, you win. People will spend $20 million or $30 million on an SAP installation, and all they get is prettier reports about accounting information they already knew. You buy I2 software, and your whole manufacturing line works better.
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Q: What else?
Landis: If you're impressed by what Dell has done with redefining the right way to run a business, then you can do a lot worse than to quit kicking yourself over not owning Dell and buy i2.
Q: Another i2 devotee, eh? If the company is so great, and the stock so cheap, why doesn't Oracle or PeopleSoft or SAP just go buy them?
Landis: Sometimes, you know you're invested in the right stock because you don't want the company to get acquired. You don't buy a stock like i2 because you can make 40% in a week when somebody announces a buyout. You get into it because you can want it to double, and then double again, and again.
Q: But strategically, wouldn't it make sense for SAP to buy I2?
Landis: Absolutely. It would make even more sense for Oracle. SAP seems more inclined to create their own products and muscle their way in. Oracle, on the other hand, might try to leapfrog in. |
