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

To: Chuzzlewit who wrote (369)	3/31/1998 4:40:00 PM
From: Tom Smith	Respond to of 4509

PeopleSoft Launches Key Product Suite (03/30/98; 4:41 p.m. EST) By Tom Stein, InformationWeek PeopleSoft today will roll out its latest and possibly most important product suite to date: PeopleSoft 7.5 is designed to show the world that not only will PeopleSoft keep pace with SAP, but that it will leave its closest competitors in the enterprise applications market -- Baan and Oracle -- in the dust. PeopleSoft 7.5 is targeted squarely at international customers, who in the past have been reluctant to buy from the vendor. For the first time, the company will offer financial, accounting, payroll, and some manufacturing applications for international markets. PeopleSoft expects its sales to jump from $815 million last year to about $1.3 billion this year, with European sales more than doubling and Japan also showing strong increases. General Motors decided this year to roll out PeopleSoft's human-resources module worldwide over the next four years. "PeopleSoft did not have the best global reputation, and there are still gaps in the product, like local language and local legislative requirements," says Mark Hillman, director of HR information management at GM. "But we believe the product flat-out works. We went through a selection process and, almost unanimously, all our regions from Brazil to Asia had a consistent, positive view of PeopleSoft." PeopleSoft is also attacking SAP where it is strongest -- in manufacturing. The new release features a demand-planning module designed to help users do better forecasting, as well as a remote configurator that will let salespeople configure and price complex products while in front of the customer. The release also sports a new "quality" module as well as an order-promising module, which lets users check finished goods, locate raw materials, and make promises on delivery dates. Version 7.5 will also introduce a product called DirectPath, which officials claim will speed up and simplify the implementation process. PeopleSoft 7.5 will be generally available beginning in the second quarter this year.

To: Chuzzlewit who wrote (369)	3/31/1998 5:08:00 PM
From: Rick	Read Replies (2) \| Respond to of 4509

Paul - I was referring to "accretive" in the literal meaning of the word, as in "it will add to" earnings. It is highly unlikely that it would "add to" earnings per share, assuming a pooling of interests type deal. I am not aware of whether from an investment industry perspective the lingo "accretive to earnings" really means "accretive to earnings per share", but it's not a big deal. In general, I prefer to side with Webster if I must choose between industry slang and proper usage as determined by general use over the course of many centuries. Regarding the "gorilla": Thanks for pointing out that it only applies to technology - that makes a difference. Even though I think it was written more as a way to sell books, than as a way to add to the body of investment knowledge, I am sure there are some nuggets to be gleaned. I often read books and articles that I don't entirely accept as completely valid information, but tend to get some value - if nothing else it lubricates the mind to compare the ideas against one's own view of the world. Like many things in our "marketing" dominated society, though, I am afraid many of these types of books start with the marketing analysis driving the content of the book rather than good investment ideas driving the content. The success of this book probably has more to do with a compelling title and the public's current apetite for finance information, particulary related to the dramatic technology sector, where fortunes continue to be made. Simple ideas like Graham's or Lynch's: good companies that are earning a good return have pricing power and not subject to impending commoditization good industry growth prospects; no. 1 or 2 in market management with solid track record don't overpay for projected discounted cash flow ....are already out there, so the marketeers need to constantly present new ideas about how to get rich. There's always a market for schemes to create wealth. In my opinion, it's difficult enough to do the work required for the fundamentals. Adding "Gorilla" tactics to my investment approach would only take time away from the fundamentals and would require a testing period. I think the proven and time tested approach of fundamental analysis of each individual stock is the way to go (at least as the beginning point). I am becoming more interested in supplementing the fundamental approach with additional analysis: technical or momentum analysis, potential event-based demand drivers, inefficiencies caused by market manipulation, etc., but don't yet have a structured understanding or approach. Cheers. Rick.