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: abhi who wrote (1649)	7/28/1998 5:40:00 PM
From: Intel Trader	Read Replies (2) \| Respond to of 4509

I know this is a bit dated, but may remind us why we bought PeopleSoft: Riley Capital Research Issues Strong Trading Buy on PeopleSoft Inc. Business Wire - July 23, 1998 14:02 HOUSTON--(BUSINESS WIRE)--July 23, 1998--Riley Capital Research announces that it has issued a "Strong Trading Buy" rating on shares of PeopleSoft Inc. (NASDAQ:PSFT). "PeopleSoft reported yet another stellar quarter late Tuesday and forecast revenue growth of 60 to 65% for the full year. We feel that the company's shares have been unduly punished by investors worried about the slight easing of the company's phenomenal growth rate, short-term transitional issues, competition in the enterprise resource planning industry, and company specific problems at competitor Computer Associates (NYSE:CA)," says Mr. Louis Riley, principal of Riley Capital Research. "The fact remains that there are very few established and profitable companies that are capable of consistently generating revenue and earnings growth at the torrid pace set by PeopleSoft." "We think that the 20% drop in the company's shares since the July 8 close presents an excellent entry point for short-term traders, as well as an excellent buying opportunity for long-term investors. On a technical basis we expect the large gap on the daily chart between $46 1/4 and $42 3/4 to be completely filled in short order, followed by a move back above $50. Longer term we expect the stock will eventually trade back to its previous peak forward P/E multiple of more than 70X, implying a price in the mid $60 range. The company's shares are presently trading at their lowest forward P/E multiple since their January 26, 1998 closing low, a time period that coincided with a significant price bottom in the Nasdaq Composite Index." "The company is well covered by some of Wall Street's best and brightest sell-side analysts, all of whom maintained their ratings after Tuesday's report. One analyst even raised his 1999 earnings estimate. We expect Wall Street's strong sponsorship of the company to continue." Riley Capital Research is a research boutique that specializes in highlighting investment opportunities that have frequently been overlooked by most investors and that are not followed by the majority of Wall Street sell-side research organizations. Some of the firms' recent recommendations have included Zapata Corp. (NYSE:ZAP) at $20 1/2 on July 15, and Egghead.com (NASDAQ:EGGS) at $15 1/2 on July 9. This report contains information obtained from sources which we believe to be reliable, but its accuracy is not guaranteed. Certain matters described in this report are forward-looking statements and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Opinions expressed are subject to change without notice. This report should not be construed as a solicitation or offer of any kind. Neither Riley Capital Research nor any of its affiliates received any compensation of any kind for the opinions expressed herein. Mr. Riley and affiliates of Riley Capital Research currently hold positions consistent with the above rating. CONTACT: Riley Capital Research Louis Riley, 281/996-1742