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

To: Lizzie Tudor who wrote (3571)	11/18/1998 10:28:00 AM
From: Marq Spencer	Respond to of 4509

>Hmmm... I disagree a little. Psft acquires their technology generally , we all know that, and its a strength. Csco and psft mgmt know that large companies are not condusive to retaining top technical talent or new ideas etc. The acquisition strategy is the right one, vs Oracles NIH strategy which does not work for this type of technology in this decade. Ill bet psft looked at acquiring a company and couldnt find one. They now are trying to apply their model of using small companies to generate innovation by spinning off this entity or whatever it is.< Michelle, I agree that a strategy of acquisitions to complement existing technology is a sound one for companies. However, that is not what PSFT is doing. If it were that, they would just find the right companies to buy. They are off-loading their R&D expenses from their financial statements, that is all. Note that this is nothing more than a creative financial arrangement. All it does is let you own two sets of shares - one in PSFT, which makes money and others in MMTM which loses money. The net is the key, but they'll now be able to put out press releases that say things like "PSFT EPS grows 45%" or whatever, when it would really be growing much less. I'm long PSFT, and am annoyed that they are resorting to creating shell companies instead of spending their efforts in selling their solutions and bringing the best products to market. BTW, note that MMTM will have no employees, buildings, offices, or assets of any kind - ever heard of a technology creator/incubator like that? - Brian.