Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Rick who wrote (852)	2/3/1998 12:02:00 AM
From: Melissa McAuliffe	Read Replies (1) \| Respond to of 940

Rick, You are seeming to miss my entire point. I was not disputing the fact that this is a wonderful stock. I was simply commenting about the timing of the price movements which you projected. If you go back through this thread you will not that I have had nothing but good words to say here. So I think it's appropriate to end this discussion and return this thread to the purpose for which it was intended rather than to see who can have the last word or who is right. The whole idea here is to be able to express our own individual opinions and perspectives. Others can then do as they choose with the information. Melissa

To: Rick who wrote (852)	2/3/1998 1:17:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 940

Rick, I agree with your general comments. Let me just point out a few items. First, in general terms, the best indicator of the volatility of a stock is it's beta, not the number of times it has corrected 20%. The beta of PSFT is quite high (some estimates being in the neighborhood of 2.0), so rather than nit-picking Melissa's basis for her comment about volatility let's just agree that this is a very volatile stock. PSFT has an interesting mode of acquiring companies. It tends to fund new companies (using off-balance sheet financing) to develop a new ERP niche, and only after they prove themselves successful do they buy them up. For example, this was the pattern they followed in buying Campus Software. In talking to PSFT support personnel, the largest negative I can find is that it would be easy for this company to outsell its support network. Demand for the product easily outstrips PSFT's ability to sell because it's support infrastructure cannot grow fast enough. BTW, I understand from talking to some independant consultants working with PSFT that Boeing is close to going for the PSFT suite. This has the potential of being a huge win for PSFT. Regards, Paul