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

To: singletree who wrote (2570)	9/17/1998 10:52:00 PM
From: Caroline	Read Replies (1) \| Respond to of 3424

What's the difference between God and Larry Ellison? <G> CB

To: singletree who wrote (2570)	9/18/1998 12:43:00 AM
From: Wigglesworth	Read Replies (2) \| Respond to of 3424

Excerpt from WSJ 9/17: [Alcatel] Domino Effect [and SAP] German software giant SAP AG bore much of the brunt. As rumors tore through the market that SAP was struggling in this third quarter, the Walldorf-based company's stock fell 14% to 830 marks Thursday, its lowest level since April. The stock is off 39% from its 1998 high of 1,351 marks. The company declined to comment on the rumors, but many analysts dismissed the possibility that SAP was struggling. "The rumors are utterly ludicrous," says Thomas Ross, a senior portfolio manager at Deutsche Investment Trust in Frankfurt. SAP "is stronger today than it has ever been," he said. The company, which dominates its market for enterprise software, recently launched a range of new products that has been enthusiastically welcomed by company watchers. ... The sell-off in SAP is a prime example of how momentum investors have strained company valuations across the sector. SAP stock was up 80% at one point this year. Even now, it is trading at around 52 times next year's earnings, says Neil Herman, a software analyst at Salomon Smith Barney in New York. At that level, stocks are punished if they fail to live up to expectations. "When you combine this rumor with a market that is schizophrenic, the combination can be lethal on a near-term basis," said Mr. Herman. Nevertheless, Mr. Herman is sticking to his 1,200-mark price target, citing the company's dominant market position. Derek Brown, an analyst at BT Alex. Brown in London, added that even if the market for enterprise software slows, as many fear, SAP would be in a good position to attract investors fleeing smaller and less-protected companies in the sector.