Fixing Glitches At A Software Star

The saga of Project Software & Development (PSDI) has a familiar ring: A hot-growth company slips up, disappoints the Street at earnings time, and gets punished by investors. Project Software, whose output is used for managing factory operations, paid a high price for its errors. In just one day last year--Apr. 2--the stock tumbled from 31 to 15. It then fell further, to 11, ran up to 26 this year, and now trades at 21. Some pros insist the stock is destined to go higher.

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