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Technology Stocks : Novell is Dead. Apple is Dead. Long Live Microsoft!

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To: Richard Forsythe who wrote (164)9/5/1996 11:04:00 PM
From: Salah Mohamed   of 238
 
Hi Richard:

Here is my question:

>>Give me one good reason why would you own MSFT right now.<<

Here is your answer:

>>As I said, because of the franchise. Why is Coke valued with 40 P/E?<<

I don't know about Coke. What does "the franchise" mean?

>>And maybe the analysts who predict 16-25% are wrong.<<

And may be they are right.

>>Historically they've grown at more like 30%.<<

No, historically their growth has been in the 20% - 25% range, except if you have some actual numbers. Last year is the exception because of Win95.

>>The revenues are always a bit flat over these quarters, the jump will come, I think, in the December quarter.<<

How can you be sure?. Corel is selling their suites for a very low price, MSFT is losing market share and have to reduce their application suites price to compete with Corel. This might have a negative impact on MSFT revenues and earnings.

>>Of course, I said 'own', not 'buy'. I'm not buying MSFT today<<

If you own or buy a stock, you expect it to go up. I don't understand your point.

Regards

Salah
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