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

To: OrionX who wrote (4186)	1/7/1999 8:57:00 PM
From: bob zagorin	Read Replies (1) \| Respond to of 4509

WSJ has story on PSFT run up in which it discounts IBM rumour but includes a reitieration of BUY by Lehman analyst and positive comments by First Albany. Look for PSFT to continue up tomorrow. Here's an excerpt: "...Lehman Brothers Inc. analyst Brian Skiba said while the rumor makes strategic sense, he is skeptical that it would happen. First, IBM already has a strong partnership with SAP, an enterprise resource planning -- or ERP -- software company that competes with PeopleSoft, and would not want to put that relationship at risk, Mr. Skiba said. Mr. Skiba said he thinks IBM would be precluded from acquiring PeopleSoft in a pooling transaction. As a result, IBM would inherit as much as $5 billion in goodwill for the company to write off. Poolings don't create goodwill. Mr. Skiba reiterated his "buy" rating on PeopleSoft shares Thursday. In a research note, he said that the company is trading at half of SAP's price/earnings multiple but is expected to increase its 1999 earnings at a rate comparable to SAP's. In addition, PeopleSoft is likely to post revenue growth of 60% for 1998, compared to 40% for SAP, Mr. Skiba said. PeopleSoft's earnings are expected to have grown 45% in 1998, compared with SAP's earnings growth of 15%, he said. SAP initially was expected to increase its 1998 earnings by 30% to 35%..."