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

To: Wizard who wrote (3091)	10/22/1998 5:06:00 AM
From: Lutz Moeller	Respond to of 4509

hi Wizzard, You wrote "20x for a company that can't grow earnings is reasonable." I agree, at 5 % interest rate You shall not get that much more. But why do You think PSFT shall not grow any more? No higher labour costs no more? No more competitive pressure? No more need for the industrial world to become smarter and more efficient. No more need to rationalize? I don't believe You. I believe the marked will grow and PSFT with it or better. Lutz

To: Wizard who wrote (3091)	10/22/1998 8:56:00 AM
From: Edward F. Horst Jr.	Respond to of 4509

Unfortunately, you may be close. What the Street hears is only the lower projection number. Plus, analysts are being pressured all over to lower 1999 projections for most stocks. With this environment coupled with the management comments, the multiple on the lower projection could be viewed as a premium. Hopefully Q4 will strengthen, but until then, ??????? The other thing which concerns me is the large number of new employees added this year. Plus, the comment from another post referring to disillusioned employees. This can be a real problem, especially when top tier sales reps bolt because they don't see the chance to continue to earn at previous levels. How the company handles this will be interesting. Look for Options re-pricing and other concessions possibly to maintain talent. I don't look for stock to rebound soon, but hope it can form a base at these levels. The market in late October is always ominous, and in a sell off, stocks which have lowered projection don't fare well. That scares me some....