How high will Microsoft fly? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly?

MSFT 483.03

+0.5%

Dec 5 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Reginald Middleton who wrote (35)	7/10/1996 5:51:00 PM
From: Andrew Chow	of 74651

>MSFT has practically no long term debt, and will fundamentally feel very little effect from such a rise< The effect of higher interest rates is more pervasive than just a direct impact on borrowing costs. Indeed given MSFT's cash horde higher interest rates would eventually create greater nominal interest income. The real impact of higher interest rates on stocks is to increase the attractiveness of alternative investments. The immediate alternative of course is an interest bearing bond. All other things being equal if rates double, your hurdle rate for capital is gonna double, and that means a drastically reduced P/E (and stock price) for equities. Your investment pals at RCM musta let that part slide... But in general, I am in agreement with your bullishness on MSFT.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next