A continued focus on margins and little change in activity in database demand will likely keep many investors on the sidelines until some more convincing catalysts are in evidence. |
Management may temper that outlook slightly given the ongoing difficulty in the PC environment. |
Microsoft's vulnerability to the PC market reaffirms our belief that Microsoft's continued success depends on its ability to transition itself from a desktop software company to an enterprise solution vendor. |
Uncertainty surrounding Oracle's model does not give us confidence that the company can continue to grow earnings at a rate that would drive 20 percent or better stock-price appreciation into 2002. |
We remain cautiously optimistic on Microsoft as the company slowly transitions itself from its reliance on desktop software and continues to roll out its higher growth, server side software. |