Mr. Kraft: Chris and I co-cover the enterprise and consumer software sectors here at Susquehanna. On the enterprise software side, our coverage includes not only some of the big caps like Microsoft (MSFT), SAP (SAP), and Oracle (ORCL), but many of the secular-trend stocks quite popular now in enterprise software. We cover Red Hat (RHAT), Novell (NOVL), salesforce.com (CRM), and Citrix Systems (CTXS); and in the business intelligence sector, Business Objects (BOBJ), Cognos (COGN), Hyperion (HYSL), and Informatica (INFA). On the consumer software side, we cover the big-four video game publishers ' Electronic Arts (ERTS), Activision (ATVI), Take-Two (TTWO), and THQ (THQI).
TWST: Let's start with the enterprise side. Chris, what's the prime
trend there at this point? Is it open source?
Mr. Kwak: Open source is certainly one of the major secular trends out
there. The way we look at enterprise software is that there are
industry-specific cycles or secular trends that are interesting, and one
example is open source. We follow Red Hat and Novell. You also have
software as a service being a fairly attractive buzzword or buzz phrase
right now, and we follow salesforce.com. You're seeing large enterprise
vendors like Microsoft trying to change the way they develop and deliver
software to be more in line with the software as a service delivery
model. And then we have what we call super-cycles like Microsoft's
Vista. So those are the kinds of things we look forward to in enterprise
software ' secular themes and then cycles that actually help drive
revenue, earnings, and these stocks.
Tickers included in this excerpt: ARII, ATI, ATVI, BOBJ, CA, COGN, CRM, CTXS, DHR, ERTS, ETN, GGG, GOOG, GTI, HYSL, IBM, IEX, INFA, ITW, MSFT, NOVL, ORCL, PH, RAIL, RHAT, ROCK, SAP, THQI, TTWO
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