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Technology Stocks : How high will Microsoft fly?
MSFT 492.06+0.2%3:59 PM EST

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To: Charles Tutt who wrote (11748)10/24/1998 2:19:00 PM
From: ed   of 74651
 
The interest earned is continue to be reserved as cash. That is why MSFT continues to have a growing cash reserve, and beat any first call from analysts. Besides that,
the costs for software companies are mainly R&D, supporting and marketing. After the recover of
the R&D cost for window98 with the first couple millions of copies sold, the additional copies sold will mostly be pure profit, the manufacturing cost is very minimum. Think about that the units of PC delivered worldwide is about 100 MM
last year, just calculate the revenue and profit of MSFT by selling PC OS and application software yourself. Besides that , how about the server, NT4, .....etc. That is why MSFT 's cash is continuing growing. All these are earned by hardworking and continuing pushing new products into the market.
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