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

To: Mike Buckley who wrote (2341)8/23/1998 3:14:00 PM
From: Lizzie Tudor  Respond to of 3424
 
Well one huge issue is the new breakdown of license revenue vs. services revenue that we see from Sap. The european rules regarding the breakdown are much different as I understand it. Sap needs to deliver license revenue growth in order for its stock to rise - nobody cares about service revenue and we know for Sap service revenue is high based on the complex architecture of the product line. Note that the revenue breakdown wont affect the PE, revenue is revenue but Sap will be downgraded (not to neutral but maybe buy from st. buy) if the licenses arent there.

Lots of enterprise analysts have a difficult time with this, for example there is speculation that Baan is barely growing at all in licenses - but there is no way to tell for sure, and thus Baanf stays afloat price wise.

Trader Dave who doesnt come to this thread but is fairly active on all the other enterprise sw threads knows a lot about this.

MH



To: Mike Buckley who wrote (2341)8/23/1998 6:14:00 PM
From: ratan lal  Read Replies (2) | Respond to of 3424
 
If SAP earnings does in fact go down based on GAP rules and itsd p/e become 120, I firmly believe that the stock will take a dive since MM/MF will pare their holdings.

We all rememeber how we thought that the listing on NYSE would raise the stock price and we were all wrong perhaps because MF/Mm did not invest in the stock as heavily as we expected.


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