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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: Raptor who wrote (218)	3/12/1998 9:54:00 AM
From: Tom Smith	Read Replies (1) \| Respond to of 4509

Raptor, You are correct that there is little correlation between PSFT and ORCL stock performances over multi-year time frames. However, if you narrow your focus to just a week or so around earnings announcements, these companies (and SAP) exert a strong influence on each other. Go back and check the stock price movements for these companies over the past two years around the weeks when any one company announced earnings. The stocks tend to move in sync for about a week. Joseph is correct in pointing this out. As I mentioned two days ago, ORCL announces earnings today. Expectations are good. ORCL and PSFT are both up as a result. SAP had positive results last month -- PSFT was up as a result after being down due to apprehension about SAP's upcoming announcement. These stocks move independently in the gaps between earnings announcements, which is how PSFT has managed to outperform the others over the long term. Tom