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Technology Stocks : SAP A.G. -- Ignore unavailable to you. Want to Upgrade?

To: ioioioi who wrote (1482)	7/16/1998 9:43:00 PM
From: Pareto	Read Replies (2) \| Respond to of 3424

Hello guys, Another newbie to techstocks, but not to SAP. I'm European, and know the company for some years. Think you all have done a wonderful investment and in due time will feel similar like Ibexx who bought at 51. After the ADR split we can say the same. SAP is a gorilla and some say they will get bigger as MSFT. I agree that they will pass the current market cap of Microsoft in five years from now. But by then MSFT might have passed the magical frontier of 1000B. Both companies have an excellent strategy and turned a core business need into their niche. Fundamentals mostly refer to P/E ratios and the like. I would like to add as a 'fundamental' the amount a business person would spend on average on a companies products multiplied by the number of users. For MSFT you might separate home users from business users. The first will spend US$ 50 a year on MSFT, the business users will spend 100 US$. Multiplied with the number of users per category results in yearly sales potential. Given the dominant market position, so you might assume they can maintain the 30% margin. Now there are around 400 million PC users, isn't it? More than 70% work with Microsoft products. Both amount spend and number of customers will go up in coming years. The story for SAP is similar. Take a list of Fortune 500 companies and see how many have taken the decision to choose SAP as their preferred supplier for the next generation of business software. How many people will work with SAP 5 years from now. Millions. How much they will spend per person on SAP. At least 500 US$ a year. In both cases, corporations have chosen for Microsoft or SAP as their supplier, so revenues for coming years are more or less guaranteed. New customers, markets and products only add up to the numbers. Somebody has a list of SAP clients? For realtime stock quotes of SAP: exchange.de Their are two stocks on the board: 'SAG' for common stock and 'SAG3' for preferred stock Kind regards from Chile and pleased to join, Note: In Chile SAP started two years ago, invited by Codelco, world largest copper mining company for a 50 million contract. Now they have 10 big clients.