Software prices rebound on earnings expectations

The US software sector has seen share prices improve in recent weeks without any significant improvement in fundamentals, warns Sean Daykin, US Growth fund manager for Norwich Union. 'Some stocks have rebounded from their lows with companies like PeopleSoft and Siebel Systems trading at around 60 to 65 their 2002 P/E estimates, more than doubling in value,' explains Daykin. 'People are expecting earnings to be up but they could be being overly optimistic as sales volumes remain low,' he says. 'In the critical corporate sector, many CEOs are requiring that authorisation for majo...