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

To: Rick who wrote (285)	3/23/1998 3:07:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 4509

Rick, thanks for a very interesting analysis from the perspective of a customer. That's something we sometimes forget. I do take issue with one statement you made, however: Remember, the premium that PSFT is getting isn't so much for the level of earnings expected in the next couple of years, but for the confidence that the business is well positioned and the earnings will come. I think that the premium is a combination of the earnings expectations and the perceived riskiness of those expectations. There was a recent discussion put out by Lehman Bros. contrasting accounting practices of Peoplesoft to Baan, and they concluded that the quality of projections was much better with Peoplesoft. Value Line makes a very similar observation. Regards, Paul

To: Rick who wrote (285)	3/24/1998 7:41:00 AM
From: Mr Logic	Read Replies (2) \| Respond to of 4509

Rick I do know about bespoke systems, benefits of third party implementation. Companies replacing bespoke systems, and the enthusiasm of the big consulting companies to perform the implementation are two of the drivers that has seen the ERP business do so well. The trend is here to stay, I agree, but with every sale the market declines. There are still good opportunities - some great ones - still out there but it is getting harder to pick good sized companies who are not already committed to SAP, ORCL, PSFT, BAAN, SSA etc.. Peoplesoft's competitors are not going to let it take the middle ground without a fight. Things will become very tight in that marketspace. I think it is nuts to be long this stock at $50! Your statement >>Peoplesoft locks its customers in for years and Wall Street will pay up for predictability. Remember, the premium that PSFT is getting isn't so much for the level of earnings expected in the next couple of years, but for the confidence that the business is well positioned and the earnings will come.<< is one I could broadly agree with. But it does not relate to the stock price. It is as true at $5, $50 or $100.