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Technology Stocks : How high will Microsoft fly?
MSFT 478.53-1.0%Dec 12 9:30 AM EST

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To: freeus who wrote (4720)1/22/1998 8:08:00 AM
From: johnd  Read Replies (2) of 74651
 
Freeus,

Sorry I couldn't get back to you earlier. But the market hasn't
opened yet. So this should be in time for you to read.

I read the MSFT reports and news service reports and analysts
comments. Let me make a few comments that might answer.

1. This is an excellent revenues, earnings reports from microsoft.
2. Despite what we heard "in plain English" from Greg Maffie, when
I see the 12 month rolling EPS of $3.16 (without one time charges)
and the $2Billion plus of unrecognized revenues, the 1.7 Billion
in positive cash flow, the 10.2 Billion of cash in hand, ....
I feel I can close my eyes to invest my my long term investment
dollars to this allstart hall of famer.
3. I expect that by the year 2000, MSFT will be the most profitable
company on planet earth, (Intel will be second). ALso by year 2000
(Actually I expect this to happen in 99, MSFT will have the largest
market cap of any stock.
4. In the long run, the companies performance determines stock price.
In the short run, anything can affect the price "from asia worries
to news of affairs of people in office"
5. I still maintain my prediction of 180 - 200 for this stock by
Jan 99. Soma analysts (like Stanek) agrees with me. Merryl lynch
on the other hand came out with a 150 target in 12 months. That
surprised me a bit.

On a separate note, I don't feel comfortable about CSCO and DELL.
[I won't elaborate as to why ion this thread - that is meant for CSCO
and DELL thread.]

johnd
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