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Technology Stocks : How high will Microsoft fly?
MSFT 486.98-1.4%Nov 19 3:59 PM EST

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To: Harvey Allen who wrote (41319)4/5/2000 8:52:00 PM
From: ThomasG  Read Replies (1) of 74651
 
I have been a long term MSFT holder and like everyone else was dissappointed. I have a couple of points that I think we should focus on;
1. MSFT PE is very low compared with the rest of the tech sector at 55 compared with 100-200 for SUN, IBM, Cisco and co. So MSFT is potentially a good value investment. Will it go higher?
2. There is clearly no possibility of MSFT getting re-rated onto a higher PE in the near term , so they are going to have to grow the earnings per share to make the stock go higher. This qtr earnings are very important . If they report good earnings and are positive about revenues going forward, then we can expect a recovery in the share price......if they dont then the confidence of long term holders will be badly shaken and the stock will be dead in the water for another 6-12 months

So the 17th April will be a very important day!
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