How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 491.12

+1.7%

3:59 PM EST

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To: Shea Jones who wrote (33)	7/8/1996 8:32:00 PM
From: Bill Fischofer	of 74651

I agree, MSFT's market just keeps getting bigger. The PC revolution is really just getting started. Look at the recently announced Acer Basic, a $500 entry-level PC designed to be marketed in Asia to a new breed of middle-class consumer who are hungry for computing power but who can't afford a $2000 western-style PC. Acer (based in Taiwan) estimates they may sell upwards of 200 million units of this machine over the next 3-4 years. And get this: it runs Windows 3.1! Win3.1 sales must be pure profit for MSFT at this point. And every one of these sales will be a potential Win95 upgrade in a few years (when Win95 sales will be viewed as "found money"). Not only is the market getting bigger, but the other big factor at work in MSFT's favor is GATT, the General Agreement on Tarriffs and Trade, which was signed last year. MSFT, as the world's most ripped-off company, stands to gain hugely from even modest reductions in software piracy rates. Yet respect for copyrights and other intellectual property is one of the key provisions of GATT which should boost MSFT's international profits tremendously over the next decade. Remember that every dollar paid for software which used to be pirated flows directly to the bottom line. This is a factor which very few have noted, but was one of the main reasons I got into MSFT last year. But of course, MSFT isn't standing still. NT 4.0 should spark a huge bonanza for the entire computer industry as corporate users (most of whom run Win3.1 on 486-class machines) leapfrog to NT running on Pentium Pros. The next 12-18 months are going to be very busy.

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