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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Michael Burry who wrote (6234)	3/7/1999 3:34:00 PM
From: Bob Rudd	Respond to of 78515

ERP PSFT...Good article on hiding R&D...Ever read Schillit's book on Financial Shenanigans?....good read. I'm not currently following the sector, but plan to revisit it whenever SAP takes a dive. They're the gorilla and will continue to be, but too expensive & more bad news lies ahead to correct that situation.

To: Michael Burry who wrote (6234)	3/7/1999 4:06:00 PM
From: Shane M	Read Replies (1) \| Respond to of 78515

Mike, Nice PSFT article. I don't really know that the ERP companies can ever be called "value" stocks. FWIW, I think most investors in PSFT recognize that MMTM is a shell game to hide expenses - an attempt to appease the street, provide stock price stability, and through both of these retain employees. With the tech companies, stock options and stock price performance are crucial to employee retention. Because options are a large part of many employees compensation, poor stock performance can become a "self fulfilling prophecy" if you will for company performance. The best employees can move quickly to another company in the valley. I bought PSFT before the recent poor quarterly report, and sold immediately after - shocked at the poor results. The recovery in ERP seems to me to be out of sight right now, so I see no danger in holding off on the ERP sector until later this year or even into 2000. There's no hurry. And even then I'd prefer to get SAP or ORCL should they fall enough. Shane