All,
The following is from Briefing.com:
10:30 ET ******
MICROSOFT CORP (MSFT) 128 3/8 -1 13/16. Issue is moving lower after highly-regarded Goldman Sachs analyst Rick Sherlund made cautious comments regarding the software giant's ability to deliver upside earnings surprises going forward. However, after CNBC reported the comments with a negative bias, the analyst got on the phone with Reuters to let it be known the he is still bullish on the issue. The analyst said that although he expects Microsoft to meet 4th qtr estimates, he believes that concerns such as options issuance will hamper the company's ability to report strong upside surprises going-forward. With the stock indicated to open 3 points lower, the analyst attempted to lend support by reiterating his "recommended list buy" rating and leaving fiscal 1997 and 1998 earnings estimates unchanged. However, that did not prevent Furman Selz from taking advantage of the situation. With the stock already indicated to
move lower, the firm removed MSFT shares from its "recommended list" and lowered them to "neutral." According to analyst Sanjiv Hingoram, the downgrade was in response to the lofty price of MSFT shares, which were trading at 42 times his fiscal 1998 estimate and 33.6 times his 1999 forecast. "We believe that Microsoft's ability to provide meaningful upside surprises to published EPS estimates for fiscal 1998 may be lower than in recent prior periods because of the absence of a major product cycle in fiscal 1998," commented Mr. Hingoram. Over the past 5 quarters, Microsoft has beat estimates by: 15 cents (3/97), 6 cents, 1 cent, 1 cent, and 1 cent.<
GS's Rick Sherlund downgraded MSFT in 1995 for lack of an Internet strategy--what a laugh--and the stock dropped 10 points. Less than 2 months later Bill Gates announced; the stock made up all it lost and then some.
Ibexx |
