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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: Al Bearse who wrote (5)5/25/2000 8:19:00 PM
From: KevRupert   of 74651
 
Goldman's Rick offered some great comments today on
CNBC.

Here are King (he is a king when it comes to making comments about mr. softee) Rick's comments concerning "msft" going forward:

1. All of Microsoft's line of defenses have been used now, except for the appeal process. This is discouraging, and the judge's decision yesterday was a "stunning defeat" for Microsoft.

2. Microsoft could go up after the appeal process begins. This is because the appeal process will be on the backburner, and not in the front page - like it currently is. The company's fundamentals could become the focus again.

3. Worst case scenario: if Microsoft is broken up, the value of the company will be worth 10% (Rick's subjective analysis) less than today's prices. This is because the 2 companies (post split) would have cyclical earnings/revenue streams - and investors would pay less for this type of company. Right now the operating system segment, and the applications segment offset each other.

4. The company would be worth another 5% less due to the need to have duplicate cost structures (i.e., two sales offices in each foreign country; 2 R&D staffs; 2 headquarters and support staff in each business location; etc., etc.)

I thought some of this info would be enlightening, considering the source.

Respectfully,

advalorem
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