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

To: The Player who wrote (3377)	10/30/1998 7:15:00 PM
From: gc	Read Replies (2) \| Respond to of 4509

Player, These two news are non-event. It won't move the stock a bit. User conference is non-event too. Be careful don't be played again.

To: The Player who wrote (3377)	10/30/1998 8:01:00 PM
From: Richard Tsang	Respond to of 4509

Player, these are positive developments, not just for PSFT but for the industry as a whole. The hardware people are also improving the functionality to help ERP work better. Our company is currently using PSFT and similar to many other fortune 500 companies, have plans in place to expand installation in the subsidiary companies worldwide. That initiative is very expensive but to stay competitive in the global market, management believes ERP will really help. We have operations in 64 countries. I did not own PSFT until its recent drop and am a happy owner. If it drops below my entry point, I will add more. I have been told that one important factor the analysts use to pick stock, among many other indexes, is the equity spread. I think PSFT will continue to do well in this aspect. The money they make far exceed the cost of equity employed. DELL computer does so well in this area partly because they continue to buy back shares, which reduces the use of equity in the balance sheet. The less reinvested earnings in the equity account, the smaller cost of equity gets into the formula, resulting in inflated equity spread. I have not heard that PSFT buying back shares yet. Instead, they are active in acquisition. Management indicated in their Q3 report that there might be a charge due to acquisition in Q4. Does anyone know how much that will be? Comfortably long on PSFT RT