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Technology Stocks : SAP A.G. -- Ignore unavailable to you. Want to Upgrade?

To: Hot Diggoty who wrote (201)	11/8/1997 7:15:00 PM
From: Ibexx	Respond to of 3424

Hot, Re. Barrons article on high techs I own all those three funds (TRowe Price S$T, Seligman Comm and PBHG C&T), thus I know their performance records aren't that great this year--in fact, a lot worse than mine who doesn't have any market clout. I suspect the fund manager who PANS SAP might have a large position in Peoplesoft or Baan. I would ignore them. The effect of their remarks on SAP's stock price, if any, will be temporary. Ibexx

To: Hot Diggoty who wrote (201)	11/10/1997 5:39:00 PM
From: fyi	Respond to of 3424

Well, I have not seen the Barrons article, and my investment style is not one that bets on the momentum and likes high ratios. With those qualifiers in mind, I have several thoughts. When you are at the head of the pack, you are always going to be the favorite target for the snypers. About a year ago, one of the hot shot computer industry analysts groups issued a dire for SAP predicting doom and gloom based on what was probably some rather thin logic. Well, guess what: this prediction got alot of attention. And that is jusy what this hotshot group likes to get. Unfortunately the rather thin logic behind the prediction meant that the prediction has turned out to be utterly incorrect during the following year. Since I don't follow SAP and its enterprise applications software business closely, its hard for me to say howe long their phenomenal rate of growth can continue. Aren't they predicting it to slow down to a mere 50% for the entire year ???? But if you have ever been around the size of investments that customers have been making is SAP software, it would be all too obvious that these customers will get increasingly locked into the SAP products they install. It just is not in the cards for these locked-in customers to throw SAP out in our lifetimes. And tell me any competitor that can afford to spend the money that SAP does investing in its products ???????? SO whether SAP's valuation is too high or not or whether SAP will grow at 50% or 40% or what, I don't know. But the marketplace that SAP has created is one whirlwind (sink hole) that is going to continue to get bigger and bigger and bigger. My style is much more oriented around value plays and turnaround situations. That is why Intellicorp is of interest. INAI is attempting to use its base technology to delivers tools to serve the ever-growing SAP marketplace. It what they are trying to do catches on in a gigantic marketplace, then INAI continues to look like a very attractive situation.