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

To: sunny who wrote (1413)	7/10/1998 1:38:00 PM
From: Just_Observing	Read Replies (1) \| Respond to of 4509

SAP sneezes and PSFT catches ... SAP shares are down 5.6% today when it announced that its profit for the 2nd quarter will grow only 26% (compared to last year) versus a 71% growth in the previous quarter. PSFT is down 4.5%. SAP's sales for the year are up 60% while expenses are up 66% due in part to an aggressive recruitment campaign and an expensive bonus payment plan tied to its stock price. SAP is in the process of adding 5000 workers, a third more than the number it had at the end of 1997. 43% of SAP's revenues come from America where there is strong demand. I don't see why SAP's problems are a negative for PSFT. If the revenue growth is that strong and demand here is robust, PSFT should have no trouble meeting or exceeding its numbers. Contrary viewpoints are welcome.