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Technology Stocks : How high will Microsoft fly?
MSFT 479.17+0.7%9:31 AM EST

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To: curtis fincher who wrote (3451)10/18/1997 4:59:00 PM
From: Gary105   of 74651
 
Curtis, Flair, Sonki

TA is based on msft setting a high in both price and MACD in May and then a subsequent high in price in July but not a subsequent high in MACD - a warning sign but not terminal.

I do not believe market will tank if msft tanks - it will affect techs, but will have less of an impact on market. Money managers are more astute.

Also I want to emphasize that I continue to believe msft is a great company and will continue to do well, my concern is valuation and I believe we are transitioning from a period where annual price moved up more than annual earnings to a period where annual price increase moves up less than annual earnings increase. This Q should be a slam dunk, I am concerned about next Q and possible forward looking statements in this Q report - beyond the traditional forward looking statements.

Re. industry's reaction to msft, curtis, I see the opposite - a move away from unix systems to open NT systems to msft's benefit. I believe if it has any chance to sustain growth it is in 2 areas - NT for industry, and net based edu-tainment. The former will go well, the latter is hampered by bandwidth and it will be years before services like @home are rolled out, this is probably frustrating the heck out of msft.

Good luck to all.

All imo,

Gary
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