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Technology Stocks : How high will Microsoft fly?
MSFT 478.47-1.0%Dec 12 3:59 PM EST

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To: thebeach who wrote (1447)5/29/1997 9:43:00 PM
From: johnd   of 74651
 
I would say go for this $18 leap.

The risk you take is say EPS grows like below

6/97 - 2.60
6/98 - 3.40
6/99 - 4.40
6/00 - 5.75

All these numbers assume a straight 30% growth each year
Then say Wall street gives only a 30 PE to MSFT, then
you could see a $175 - $180 MSFT. But I think it is unlikely.
The EPS on the average is likely to 30% But PE will average
at 40 for at least $230 by year 2000.

The chart trend indicates it should be at 300 - 350. But
EPS trend and average PE shows $230 or so.

What the heck, take the risk. The reward is great. As always
be willing to loose all your money.
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