SAP AG (ADR) (NYSE:SAP)

CAPS Rating: 4 out of 5

The Company's business is developing and licensing business software solutions. It also sells maintenance, consulting, training and other services associated with its software products.

Recs

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Player Avatar blogpedia (< 20) Submitted: 12/14/2006 11:57:19 AM : Underperform Start Price: $45.78 SAP Score: -27.92

The logic is simple - Oracle has made some aggressive moves and it appears that it is now competing head-on in almost all markets that SAP is involved in. I won't be surprised if SAP is down 15-20% short term and about 30-40+ in the long term. This all assumes Oracle plays all its cards correctly. It's all about high PEs associated with these stocks. Markets are merciless on cutting down the PE if they see a stock is loosing its ground!

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