How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 477.94

-2.9%

2:54 PM EST

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To: John F. Dowd who wrote (71786)	7/27/2002 10:26:19 AM
From: The Duke of URL©	Read Replies (1) of 74651

Casual Empiricism dictates that the fact that ms is a or was a widely held mutual fund stock, would mean that it is now sold. When a mutual fund gets its redemptions, sop is that they sell the "best" stocks first. This preserves, as much as possible, the fund track record for "profitability". The would imply that they sold the MSFT a long time ago, because it has been reasonable price resilient. Since funds do not mark to market for purposes of determining profit, they can keep all the worthless stocks on the books at the original cost basis. This of course is reflected in the NAV, but not the profit. I have already postulated that citicorp funds have recently suffered massive redemptions which in their case would mean they would dump msft because they do not have an investment banking relationship with them. They therefore do not have to preserve the price to cover their own loans. BTW, I have, but cannot understand, level II.

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