Dharmesh Mistry

Newbury

CTO

Unfortuntaley there is a lot of herd mentaility in the market. For example: http://newsletters.silicon.cneteu.net/t/25663/677295/9148/0/

SAP defies software slump.

Fact is a number of companies have posted good growth, and some reaching profitability. The important thing being for investors is to look at profitability and revenue growth (e.g. Staffware). Looking a profitability alone is not wise as generally this could be a one off improvment from cost cutting.

Yes I believe there will be a slump, but yes there are selective stocks that will be bargins yet again! And unfortunately there will be another round of stocks that will fail to recover despite their grand efforts at cost cutting, sales are key!

Finally I don't think we have seen the last of "wrong" accounting practices in software, AIT, Pace. I believe this is the biggest risk for software companies.