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Technology Stocks : How high will Microsoft fly?
MSFT 478.47-1.0%Dec 12 3:59 PM EST

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To: johnd who wrote (1677)6/18/1997 10:28:00 PM
From: johnd   of 74651
 
Funds will keep buying MSFT if they see if that is best place
to park peoples's money - from risk, growth point of view.

When MSFT went to 100, people said overpriced and it went to
118. People said overpriced again, it went to 130. What prevents
from funds giving it 58 PE on a 2.70 eps or 160 by end of June?
I don't know. I will be happy with 130, 135, 140, 145, what ever.

See what gateway and dell are saying. 2nd half is looking strong
for PC sector.

See what Intel and AMD doing, cutting prices of x86. It helps more
PC sales and helps MSFT.

See what MSFT is doing, it is increasing prices on NT licence - this
helps revenue and eps numbers.

See where Gates want to take this company. Today he said he wants to
see the NT, Internet, Windows CE business to be as big as the windows
business or about 8 billion each for a 32 billion total. Add to that
grwoth rates, you will see what I mean.
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