Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: gc who wrote (3386)	10/31/1998 9:11:00 AM
From: Trader Dave	Read Replies (3) \| Respond to of 4509

Gee whiz melissa, why are you so threatened by someone offering a countering viewpoint? Are these threads just supposed to be cheerleading? Do you want ttf off of the sebl thread since he offers a differing viewpoint? GC is right, the users conference and the analytical applications announcements won't make a difference. Analytical applications are a growing area, no doubt, but that's is not the relevant question. Here is the relevant question: Are analytical applications sold into the PSFT installed base a large enough opportunity to offset the declining growth rates in the core erp/backoffice business? probably not. resources in IT organizations are shifting from the deployment of erp/backoffice systems (work that was done largely in the 1994 to 1998 time frame) to new areas such as front office, business intelligence, e-commerce and supply chain. PSFT is a great company and well run. however, it will be a challenge to find large enough opportunities to offset declining growth rates in the core $1 billion plus annual business. While they may be investing in those new areas, they've got a massive installed base to keep happy, so i would argue that a large percentage of their R&D has to be devoted towards incremental upgrades of the core technology, not new areas. they could have (and did) use their inflated stock to make acquisitions to grow in new areas, but with the stock at these levels, acquisitions are harder. I will also tell you that investor sentiment has changed for PSFT and the other erp players (except perhaps SAP which will last a little longer) they want out of the erp/backoffice sector and will use any foolish retail buying and market rallies to help buy their way out of the stock. Great company, poor stock. GC stick around, the cheerleaders hate you, but many lurkers welcome dissenting opinion, it's what makes these boards relevant. TD