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Technology Stocks : How high will Microsoft fly?
MSFT 491.13+1.2%12:47 PM EST

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To: mxyztplk who wrote (1638)6/17/1997 7:09:00 PM
From: Brian Malloy   of 74651
 
Arno,

I have been railing about these analysts and their comments on INTEL's chip price cuts on the INTEL thread for a few days. The more I read what these guys write the more I am just left scratching my head. If they ever took ECON 101 they must have forgoten the basics.

Things like segmented marking. Offering your product at various price points, the key being to MAXIMIZE TOTAL PROFIT, not maximize profit in a given stratum of your market. The basic concept of trade-offs seems to flow from one side of the head to the other without stopping.

Using their silly logic, MERCEDES and BMW should be out of business. We should all be driving Yugo's or Escorts and be happy doing it.

Brian
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