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

To: Tom_ who wrote (4241)	1/13/1999 3:34:00 PM
From: Rick	Read Replies (1) \| Respond to of 4509

Thoughts on IBM rumor: - if PSFT is receptive, it makes alot of sense to me for the following reasons: 1) IBM money would assist in the battle with SAP and ORCL; both of these competitors have deeper pockets and given the 1999 business uncertainties, PSFT may be at a crossroads in the competitive battle 2) IBM name, prestige, account penetration with HW and SW, sales force, etc. all are net pluses 3) If PeopleSoft is not able to maintain it's stock price this year, employee morale (compensation via options) will put some pressure on the company Other thoughts: 1) It's also possible that IBM would make an investment with options to purchase more later; this might be a way to avoid the issue with IBM unable to do pooling of interests due to it's own share buyback 2) CNBC just mentioned that IBM just made a "shelf offering" giving it the ability to issue $4 Billion in stock. This generated rumors of IBM purchasing Sun Microsystems, but as CNBC noted, it's not nearly enough for SUNW. Is it possible that IBM may do a part cash, part stock deal for PSFT ? 3) Regarding the issue of culture. 3 years ago, I would have said no way IBM is a good fit, but IBM seems to be changing for the better, in large part due to Lou Gerstner. He has got great respect for what he's done at IBM and I think he/IBM would be an attractive partner. Anyway, maybe PSFT can go it alone. I assume they have opportunities to sell out, so it looks like either way a PSFT investment is a winner in the long term. I also think that they are smart enough to know that if the stock price continues to downtrend in the short and intermediate term that there are great risks to the business. for what it's worth, rick.