How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 472.22

-1.3%

Nov 21 9:30 AM EST

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To: mozek who wrote (46951)	6/18/2000 12:33:00 PM
From: johnd	Read Replies (1) of 74651

Microsoft employees morale got to be high. (a) Strong product developments, great team (b) Stock options: 97 July grant : 36 (?) 98 July grant : 56 (?) 99 July grant : 86 00 April grant: 66 (4/24 special grant) 00 July grant : ?? (I would guess price between 72 - 96) That is a pretty rich option payout with time. The folks joined during the last one year have been under water but they will do just fine if the stock keeps moving up from here. In Jan 98 MSFT was at 32.5 and it more than doubled to 70 by Jan 99. Then from Jan 99 to Jan 00 it went from 70 to 120. So basically in 2 years the stock went from 32 to 120 or about 3.8 times this kind of gain was too much and was That was too much of a gain in one year and was way ahead of eps growth. So it is natural that we see pull back. Even with today's price, the stock has moved from 32 to 72 in 2.5 years. Not bad. Valuationwise it is a bite chaeaper than it was 2.5 years ago. I think 90 - 100 now would bring it to where it can considered fair valuation. I think in a year from now, the got to be in the 150 - 180 range or 75 - 90 after a 2:1 split. I expect a stock split in first half of 2001.

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