Stock markets sensitive to oil price
Once again in the third quarter of 2004, the price
of oil was the key macro-economic factor on global
bourses. As the cost of ‘black gold’ continued to
escalate, the economic outlook worsened. Major
indices such as the Dow Jones and DAX were
affected, posting negative third-quarter development.
Tech stocks also took a tumble, with considerable
losses for the TecDAX and Nasdaq 100
between July and September.
However, despite the broader economic woes,
Software AG shares bucked the trend to continue
the positive development of the first six months.
Having ended 2003 at €16.30, stock closed trading
on September 20 at €26.51 – significantly outperforming
tech-stock benchmarks TecDAX and Nasdaq
100. These indices posted losses of 8 percent
and 4 percent, respectively.
Increased interest from US investors
We stepped up IR activities in the third quarter,
making important contacts at investor conferences
and roadshows in Germany and leading European
financial centers. However, these events were not
restricted to Europe: We responded to increased
US interest by holding two investor conferences in
New York. In the future, we will increase efforts
to attract investment from North America.
The number of analysts providing coverage of
Software AG shares remained high in the third quarter,
at 21. Positive recommendations remained at
16, following publication of third-quarter results on
October 28. Four analysts rated the stock as “sell”
or “underperform”. One “hold” was downgraded to
a “sell”. And there is one remaining “hold” recommendation.
The average target price was €30.
Quarterly reports available in innovative new XBRL format
Since October 2004, Software AG quarterly reports
have been available in a new format: The traditional
HTML, PDF, and print versions are now supplemented
by XBRL (eXtensible Business Reporting Language).
XBRL is a freely available XML-based standard for
handling corporate financial information, designed
to significantly streamline the exchange and comparison
of data. The new language enables direct
access, rapid availability, and automatic processing.
This benefits financial institutions, investors, companies,
and analysts. This will cut the costs of generating,
publishing, and distributing financial data.
Furthermore, automatic conversion, rather than
manual transfer, will increase the quality and integrity
We are also supporting Deutsche Börse’s pilot XBRL
project with essential technology expertise: Financial
reports uploaded to the DB system are saved and
managed using our latest Tamino XML Server software.
And Software AG has also been tasked with
operation of the XBRL portal for the German stock-exchange
This project provides further evidence that our
innovative solutions are successfully gaining ground
in the marketplace.
For further information on the XBRL initiative and to
view quarterly reports in the new format, visit