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Technology Stocks : PSFT - 1997 Outlook [closed thread] -- Ignore unavailable to you. Want to Upgrade?

To: Bilow who wrote (519)	11/11/1997
From: Go Blue	Read Replies (1) \| Respond to of 940

Bilow- I have been an investor in PSFT now for 3+ years, and a regular on this thread for 2+ years. I can't tell you how many guys have come to the table in this forum saying put this, short that, PE this, and ended up loosing their shirts. Bottom line is this: PSFT is a very well run company that is operating in a market that is still largely untapped (middle market, Europe, Asia-Pac, SIS, Y2K, etc.), and will continue to experience excellent growth for the foreseable future. Hence, the stock trades at a premium, like others in its sector (BAANF, SAPHY, ORCL, etc. all trade @ PE's well above the NASDAQ average). Regards, Blue

To: Bilow who wrote (519)	11/11/1997 1:17:00 AM
From: Da Zipstah	Respond to of 940

>>Of course, puts are pretty hard to make money with. But I've been quite lucky with them.<< Bilow, thanks for your input, and good "luck" with your puts. It's always nice to have a dissenting voice ... Long on PSFT, Da Zipstah

To: Bilow who wrote (519)	11/11/1997 1:19:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 940

Carl, there are a number of inaccurate statements in your post. Let me correct a few of them. Earnings for this year are expected to be $1.73 according to Lehman Bros. That computes to a P/E of about 40x. Projected 1998 earnings are $2.45, so the forward-looking P/E is about 26x. Second, operating earnings were about 19% of sales in 1997. I never pay attention to either book value or PSR's. In their press release PSFT indicated that they were comfortable with 75% growth for the remainder of the year (read that as 75% minimum because they always seem to surprise). Also, for this company you need to pay special attention to deferred revenues (listed as a current liability on the B/S) -- this item is a peek into future revenues, and it stands 50% higher than it did nine months ago, and almost 22% higher than it did 3 months ago. This is evidence that sales may be accelerating. Here are the deferred revenue numbers: 4q 96 $183,252 1q 97 204,893 2q 97 231,189 3q 97 283,816 Based on these numbers I would guess that PSFT will be looking at a minimum of about 55% revenue growth next year (but it could be a lot higher). Regards, Paul