How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 487.72

-0.9%

3:28 PM EST

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To: Milan Shah who wrote (53686)	11/30/2000 7:23:49 PM
From: Dave	Read Replies (2) of 74651

In the case of MSFT, there's $56B of short and long term investments, and a market cap of $306B - or about $10 of liquid cash for every $57 share. Discounting that, you end up with a PE of about 30 on a trailing basis. If low PE-after-cash for a growing tech company is what you are after, buy AAPL. They have about $12/share in cash and investments, and their price is $16.50/share. Discounting that, you end up with a PE of a little over 2x on a trailing basis. What's more, AAPL isn't threatened by worldwide antitrust measures, and their operating earnings increased by over 40% last quarter rather than decreasing like MSFT's did. When this Tech Depression wallows in its coming depths, 30x earnings will sound absurdly expensive! Dave

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