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

To: Mr Logic who wrote (264)	3/20/1998 8:07:00 PM
From: Rick	Read Replies (2) \| Respond to of 4509

For what its worth, I have little doubt that Peoplesoft is undervalued. I would begin to get concerned about valuation above $60. There is no company better positioned to take advantage of Y2K, EMU conversion, and the general trend of using software to better manage critical business processes. On the intangibles, it's employees are highly motivated and seem to have the company's and its customers interests in mind. Unlike alot of Silicon Valley companies, Peoplesoft seemingly doesn't have to bribe new talent to come on board. This is a very unique situation. This type of positive energy and momentum is very difficult to slow down. It's simply amazing to me that anybody would short this stock. There are so many speculative stocks out there that are not making money, have no brand name recognition, and yet some people choose to short Peoplesoft - to each his own, I guess. The only possible event that concerns me about valuation is if Peoplesoft chooses to make a large strategic acquisition (Customer Care and/or Sales Force Automation). But, if it happens I would just consider it another buying opportunity. I have strong contrarian tendencies, but this is one that you just buy, sit back, and let run - no reason to believe that things are anywhere close to slowing down here. Rick. A few years down the line, the earnings acceleration will be awesome. For the moment, the growth and internal investment mode will restrain short term earnings. Some will point to the high P.E. as indicative of overvaluation (very short-sighted!) Shorts, with all the speculative, hyped stocks that are not making money and whose very future as a going concern is in question, why in the hell would you short Peoplesoft ? Have you not looked at the max chart in Yahoo ? Do you not think that people had the same contrarian feelings you had 6 months ago, 1 year, 2 years, 3 years ?