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

To: Rick who wrote (2874)	10/20/1998 12:31:00 AM
From: Chuzzlewit	Respond to of 4509

Rick, I think I disagree with you on a couple of points regarding PSFT's downdraft. The proportion of service/license revenue is increasing, and according to Value Line, that generally results in a decrease in valuation. Value Line also pointed out that SAP is aggressively going after PSFT's market with some very big discounts. Now whether this is true or not is immaterial at this point. The general perception is that it is true, and it is the perception, not the reality, that drives the market. But even if these concerns are correct, it seems to me that the bloodbath was overdone. PSFT's conservative accounting gives it excellent revenue visibility going forward. Perhaps when investors look at tomorrow's results with a little less passion we might be very pleasantly surprised at their reaction. TTFN, CTC