How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 423.31

-1.6%

Feb 2 3:59 PM EST

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To: t2 who wrote (59708)	7/12/2001 1:31:18 AM
From: Dave	Read Replies (1) of 74651

What happens if MSFT does not lose on its equity investments next quarter. First look at what the company will earn in just interest per share...I calculate 1.5billion on cash of 30billion at 5% --that is a minimum of 25 cents per year!!! Golly, that's big money! So since interest earnings deserve a P/E of 1, let's just subtract that from their share price of $70, and we get $69.75. On top of that they have regular operating earnings. Stagnant operating earnings, at a 40 P/E. Just imagine what happens if the tech stocks start recovering into year end and their stock porfolio starts gaining..just like a mutual fund. Exactly. Mutual funds get a P/E of 1. So MSFT would sell for under $2/share. Be careful what you wish for. Dave

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