PSFT - 1999: The "Make-It-or-Break-It" Year? Message Board

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Technology Stocks : PSFT - 1999: The "Make-It-or-Break-It" Year?

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Oct 29 5:00 PM EST

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To: Raptor who wrote (368)	3/31/1999 12:35:00 PM
From: Michael Burry	Read Replies (1) of 1274

Fundamentally, this announcement should very much damage the bull case. At least as a prominent bear on the stock, I've had a lot of sometimes hateful feedback (not so much here but definitely in private e-mail and on the Yahoo board). A frequently cited statistic was that management had projected 20-30% revenue growth. Funny how confident it sounded at the time. God forbid management might be projecting confidence to dump record numbers of shares. Not that I believe this but it is in the realm of possibility. Now, the growth has not just slowed but stopped, with deteriorating margins (of course) thanks to piddling license sales. And with 80% of corporations planning on putting a freeze on new implementations in the last six months of 1999, the question becomes when will we see revenue contraction? Too, since I have developed some distaste for the ethics of PSFT management, I find it interesting that they announce this and then rapidly follow with "we will cease giving any kind of public projections in the future." Yeah, in public. Soundview and other favored analysts will still have the right to grab an entire afternoon of audience with top brass, at shareholders' expense, on shareholders' time. Mike

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