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

To: Pete who wrote (699)	1/9/1998 4:51:00 PM
From: Satyr	Read Replies (1) \| Respond to of 940

Your math is correct but stocks trade on perceptions not percentages. Based on your formula Yahoo should be trading at ummmmmm can we deal in negative numbers????? Considering the tank job the market as a whole did today i think Peoplesoft held really well especially late in the day as things accelerated. On the other hand you could be right VBG Satyr

To: Pete who wrote (699)	1/9/1998 6:04:00 PM
From: Melissa McAuliffe	Respond to of 940

Pete, I would be absolutely shocked if PSFT's 1998 earnings were only .59. Keep in mind that these estimates will likely be revised upwards as they have been historically. At some point last year I went back and tried to determine how much difference there was between the real eps and the estimates at the beginning of the year. I don't know how I got this info, nor do I have it available, but the beginning of the year number was very different from the actuals. I left a message on this thread a while back..https://www.siliconinvestor.com/readmsg.aspx?msgid=2993027 There is no way PSFT would be expanding their sales force by 80% so they could grow 43%. At least, IMHO. Keep in mind their new products and new markets. If you are waiting to buy until it hits 25, you will probably be waiting a long time. If it goes down to anywhere, it would be in the range of 27 1/2 and then not for long. (I am only saying this from looking at the support on the chart). However, that support represented the support level pre-split and from what I have read about support, it is usually at round numbers so 30 may be a more realistic support level. So unless something is fundamentally wrong with the business or we have a market meltdown we won't see 25. Again, this is MHO. Melissa

To: Pete who wrote (699)	1/9/1998 8:20:00 PM
From: Raptor	Read Replies (1) \| Respond to of 940

Pete, I am with Melissa on this one - where do you get 1998 EPS of .59? I assume your 1997 0.41 is split-adjusted from 0.82. For 1998, you are assuming just less than 44% growth. I do not agree nor do I think that PSFT's growth is going to slow to that degree. PSFT is looking at 75% themselves. Obviously you have stated your opinion which is fine, but don't hold your breath for $25 - unless some outside factor creates a calamity. I am not going back to look up the exact numbers for this message, but if you check back in Ocotber with Black Monday timeframe, PSFT didn't fare too badly compared to many others, so even a calamity might not do it. PSFT is down about 7 bucks (14 pre-split) in past week. Historically, this is a serious drop for this stock, so to imagine it dropping more than that again is not in my mind anyway.