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Technology Stocks : How high will Microsoft fly?
MSFT 478.47-1.1%Dec 12 3:59 PM EST

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To: Dennis Doubleday who wrote (45698)5/31/2000 11:32:00 AM
From: Richard Nehrboss   of 74651
 
>>The Fools did their math wrong

Maybe, but the bigger issue is their assumptions are way off base. A 25% discount rate is ridiculous. Even fly by night small caps warrant a much smaller discount on the order of 15-18%.

Secondly, 15% growth for the next 10 years seems tame given that analyst expectations for the next 5 are 23%.

Redo the math and then look at a built in double, plus 20 percent or so appreciation in the next few years from there.

Richard
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