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

To: Lutz Moeller who wrote (3145)	10/22/1998 5:59:00 AM
From: Lutz Moeller	Respond to of 4509

Chuzz , addendum markets phantasise about [unrealistic imo] rate cuts in Germany and SAP, in typical blue chip manner, moves here in Frankfurt 5% up! The world has, what it wants: 1. Fed rate cut. 2. Japan works on banking reform with terrible large amounts of money (may take some time, to show results). 3. Congress gave the 18 billion $ to IMf. 4. Dollar strenghts to rescuce US trade gap. 5. Brazil chose Cardoso (not leftish da Silva]. 6. IMf agreed on rescue package for Brazil yesterday. Wolf! Crisis! Which crisis? Above mentioned leaves the Asian crisis contained to mostly Japan. It looks like that we shall, will live with it. The world economy will not end. (So SAP shorts, watch out!) Lutz

To: Lutz Moeller who wrote (3145)	10/22/1998 11:49:00 AM
From: Chuzzlewit	Read Replies (2) \| Respond to of 4509

Good Morning Lutz, At least it's morning on the west coast of the USA. I would like to amend the point I made about continuing excellent fundamentals. There is a possible negative which nobody on the thread seems to have picked up on. PeopleSoft is sitting on around $670MM in cash and cash equivalents. This is clearly an excessive amount, and I think either speaks to poor cash management, or the possible intention to use the cash to buy another company which might significantly enhance PSFT's position. Given the combination of a distressed stock market (at least as far as ERP is concerned) and low interest rates, it seems that the stage could be set for the purchase of a quality software company for (gasp!) cash. So the question I pose is what companies are out there that might be had for around $500 MM that could significantly enhance PSFT's position? I believe the timing is right to convert that "negative" into something meaningful to the company. TTFN, CTC