How high will Microsoft fly? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly?

MSFT 508.82

+0.6%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: ed who wrote (30161)	9/26/1999 9:42:00 PM
From: edamo	Read Replies (1) of 74651

ed...re: balmer, ceo's, overvalued, etal... balmer was correct in stating that tech stocks including msft are overvalued. you can come up with any "metrics"(great new buzz word of the nineties) that you want, but the bottom line when a business is valued for purchase the price is determined by the cash outlay, and the return on this investment. if one were to buy all the outstanding shares of msft at the current market value, the business would not return enough to make the purchase viable. the price of the stock is based on the future perception of growth. the stock is not a reflection of the reality of the company. msft ceo was speaking in a contemperaneous fashion with validity. the new world of finance can make up any new parameters to "value" a business, but these "metrics" are only a way to "rationalize" the "value" of a company' share price, the new "metrics" are intangibles and violate the rules of "real" business. you can't buy something at a price so high that it prohibits you from turning a profit. all must learn to separate the company from the stock. ceo's run the company, the stock is run by what the open market on a daily basis think the future of the company is....no more, no less... ed a.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next