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

To: Melissa McAuliffe who wrote (2789)	10/16/1998 4:38:00 PM
From: RetiredNow	Read Replies (1) \| Respond to of 4509

Melissa, never discount the power of middle market companies. First and foremost, everyone knows that the real drive in our economy come from the entrepreneurs. Second, many large companies are starting to see growth in the SOHO and consumer segments that make up in volume the loss in margins they had at the higher end segment. For instance, Cisco has now stated publicly several times that growth in SOHO and consumer segements will be tremendous factors in ennabling them to maintain their 30%+ growth rates into the future. Brokerage companies didn't think they would hit new growth markets until the advent of the online brokers. IBM dropped the ball in the PC boom of the 80's because they felt that the real opportunity was in the high end mainframes. Moral of the above stories: don't get caught up in conventional thinking. The SOHO and middle market is precisely the one that is most ignored. When premium companies like Cisco and PSFT provide equipment and software that enables them to gain a competitive edge, they respond with cold hard cash. Volume inevitably makes up for margins and that's the long term name of the game.