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Technology Stocks : Stock Swap

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To: Logain Ablar who wrote (16735)9/28/1999 4:54:00 PM
From: Kachina  Read Replies (2) of 17305
 
Just a note.
I would be very cautious about betting against Microsoft. And thinking that Windows 2000 won't sell, while a nice thought, is silly.

Two things to remember relative to Microsoft.
1. An unusually large percentage of the stock is in private hands, they hands of employees and ex-employees. They have proven amazingly loyal.
2. Microsoft still occupies the most lucrative part of the software market. Their profitability is simply phenomenal. They make more off Apple computers than Apple does.
3. They have that model down. It is proven, and it works. Sell the OS, and tightly couple the OS with applications, and sell them together. Resell over and over to the huge base. Go for broke and take no prisoners.

In short, while MSFT is probably overvalued, betting against them is not wise.
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