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Technology Stocks : How high will Microsoft fly?
MSFT 472.22-1.3%3:59 PM EST

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To: David Howe who wrote (53725)12/2/2000 1:27:25 AM
From: David Howe  Read Replies (3) of 74651
 
Another question for the board is regarding MSFT's long term growth. If MSFT matures into a company that grows EPS an average of 10% a year or so we will be at the whim of the market. Bear markets might give a company like that a PE of 20 and at the peak of bull markets a PE of 80 might be reasonable. So if in 2002 MSFT has EPS of $2.10 the stock could be $40 if we're in a bear market, or $160 if we're back in a raging bull market. It's a guessing game, but it's a game I can accept from a long term investment perspective.

What I'm wondering is... does anyone think there's a chance that another phase of rapid growth is out there for MSFT. They're the leading software company in the world. A large number of the best software engineers work at MSFT and the company has terrific leadership / management. Is there another technological revolution that they will take the lead in, or at least play a major role?

Will they capitalize significantly from PDAs? Wireless? Computerization of the home and auto? Voice recognition software? Virtual reality? Super advanced video games that we can't even imagine? Something totally beyond our grasp today?

With the market in great trouble today, I'm tired of looking at the near future. What's possible for MSFT 5 to 10 years from now? Any guesses?

Dave
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