There are rumours in the air about what SAP may announce on 28th January according to Reuters. They include no future prediction of sales (probably very wise and no surprise given the current economic climate!), the fact that Leo will take on all running of the company from that point (which probably means a new governance model given the current climate – again probably wise), and a potential indication that they won’t be rushing to their 35% profit margin (which they had never given an exact timetable for anyway).
So all in all, on a logical basis, pretty sensible, but the stock exchange thinks otherwise and dropped the share price. If SAP maintain their margin they will be the envy of many of their customers, who at the moment are struggling for any margin!
Personally, given the conditions, I feel it’s time the stock exchange traders readjusted their views and instead of trying to make the massive gains they are used to, started to look for safe havens for their investors of which surely SAP is one!