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Technology Stocks : How high will Microsoft fly?
MSFT 483.03+0.5%Dec 5 9:30 AM EST

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To: mozek who wrote (29931)9/24/1999 8:30:00 AM
From: nihil   of 74651
 
Anyone who can count will be able to determine how overvalued MSFT is. P/E/GR is perhaps 4 times too high. Unless Microsoft can grow earnings at accustomed rates for 20 years or so without growing revenue at accustomed rates it is finished as a growth stock sometime in the next few years. I believe this is impossible. When the P/E declines -- as it must, those who exited before the crash will be very happy and if they can explain why we will think them smart. This has been true for a number of years. Is any prepared to say that this is the crash? If it is, Balmer has just given us a wonderful opportunity to bail out with most of our profits. Let's say sell half today.
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