PeopleSoft, Inc. designs, develops, markets and supports a family of enterprise client/server application software products for large and medium sized organizations. For the 9 months ended 9/30/00, total revenues rose 17% to $1.24B. Net income totaled $101.5M vs. a loss of $172.2M. Revenues reflect increased service revenues due to an increase in maintenance. Net income reflects the absence of a $176.4M contribution to Momentum Business Applications.

January 11, 2000

PeopleSoft, Inc. is a leading provider of enterprise application software products, such as human resource management, financial accounting, and supply chain management solutions, for large and medium sized organizations. Shares of PSFT have been trending up since May, when PSFT hit its 52-week low of $12. On Thursday, the stock hit a 52-week high of $53.88, just shy of the all-time of $57.44, set back on 4/20/98. PSFT is currently moving up on a strong earnings report from SAP AG (SAP), and we believe that this has created solid momentum as we move towards PeopleSoft’s earnings announcement, expected on January 31st after the bell. From a technical perspective, support is Wednesday’s intra-day high of $49.75 with stronger support at Tuesday’s intra-day high of $46. Resistance is Thursday’s intra-day high of $53.88 and then the all-time high of $57.44. Traders may consider entry points on a bounce off of $49.75 or a breakout above $53.88 on volume greater than 3.5 million shares by midday. We plan to set stops at $46 to limit potential losses.

Picked on January 11th @ $51.13
Change since picked +0.00
Stop Loss @ $46.00

January 18, 2001

Enterprise software provider PeopleSoft is bouncing back after testing support at the 5-dma. On Thursday, PSFT hit an intra-day high of $53.19 before pulling back to a close of $52.06 on volume of 5.79 million shares. The stock continues to trade higher on the 5-dma as we move closer to its earnings announcement, scheduled for January 31st after the bell. Until then, support is the 5-dma at $50.38 with stronger support at the January 11th intra-day low of $47.06. Resistance is the January 11th intra-day high of $53.88 and then the 4/20/98 intra-day high of $57.44. A bounce off of $50.38 or a move above $53.88 on midday volume greater than 3.5 million shares may be possible entry points. Our stops remain at $46.

Picked on January 11th @ $51.13
Change since picked +0.94
Stop Loss @ $46.00

January 16, 2000

PeopleSoft, Inc. is beginning to recover after a quick round of profit taking last week. Shares of the enterprise software provider traded down to an intra-day low of 47.63 early in the session. However, the stock made a strong comeback, trading as high as $50.44 before pulling back to a close of $48.69 on volume of 3.67 million shares. We are encouraged by Tuesday’s action because PSFT rebounded after testing support at the 5-dma. The company is expected to announce earnings on January 31st after the bell and we expect earnings anticipation to drive the stock to new highs. In the meantime, support is the 5-dma at $48.56 with additional support at the January 11th intra-day low of $47.06. Resistance has come in at Friday’s intra-day high of $50.63 and then the January 11th intra-day high of $53.88. Traders may consider opening new positions on a bounce off of $48.56 or a move above $50.63 on volume of at least 3.5 million shares by midday. We are leaving our stops at $46 to limit losses.

Picked on January 11th @ $51.13
Change since picked –2.44
Stop Loss @ $46.00

January 14, 2001

Enterprise software provider PeopleSoft, Inc. was hit with some profit taking on Friday, after hitting a 52-week high during the previous session. Shares of PSFT spent the entire day in negative territory, hitting an intra-day low of $47.81 on volume of 7.22 million shares. Despite Friday’s pullback, the stock did make its fifth straight higher low and its upward trend remains in tact. We expect PSFT to regain its momentum as we move closer to the earnings announcement on January 31st after the bell. For now, support is the 5-dma at $47.19 with additional support at Tuesday’s intra-day high of $46. Resistance is now at Friday’s intra-day high of $50.63 and then $53.88, Thursday’s intra-day high. A bounce off of $47.19 or a breakout above $50.63 on midday volume greater than 3.5 million shares may be possible entry points. We are keeping our stops at $46 as downside protection.

Picked on January 11th @ $51.13
Change since picked –2.63
Stop Loss @ $46.00