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

To: gc who wrote (2870)	10/20/1998 12:19:00 AM
From: Rick	Read Replies (2) \| Respond to of 4509

gc - I am going to have to disagree. I think it's an excellent buying opportunity, and here's why: 1) As Raptor mentioned, ".....PSFT never left". The vast majority of PSFT's decline has been related to overall market conditions. Of course, part of the decline was related to the Y2K/slowing growth story that has been well circulated. Keep in perspective that PSFT has not missed on earnings expectations, has given great guidance, and is known to practice conservative accounting. As market conditions continue to improve, investors will once again pay a nice premium for these features. 2) Today's price action was very strong. Combined with the increasingly optimistic market conditions will be very alarming to shortsellers. I don't know how big the short interest is, but if it is big, a good earnings report and a reversal of general sentiment in PSFT could well create the MOTHER OF ALL SHORT SQUEEZES! 3) The fact that today's strength comes after a relatively negative Barron's article should not be ignored either. Last week PeopleSoft gave the finger to Alex Brown, and today investors are giving the finger to Barron's. On the downside PSFT was caught in severely negative market sentiment which took it too low, and now it will benefit from increasingly positive market sentiment, which will likely take it too high over the next month (with a little help from short covering). Make no mistake about it, this is a reversal, and those that were able to filter out the noise took advantage in the high teens and low 20's. I would be very surprised to see a down day tomorrow; and even more surprised if PSFT were not higher on Wednesday. Exuberantly Yours, Rick.