How high will Microsoft fly? Message Board

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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: Michael Wan who wrote (253)	10/5/1996 3:32:00 PM
From: Valley Girl	of 74651

Michael, Renee, et. al.: Miss the quarter? You must be joking. MSFT never misses a quarter, and remember that the bar's set pretty low at $0.90. Still, just meeting the quarter might not be enough to satisfy the built-in expectations here. The P/E's awful high. We'd better have more like $0.95 to hang onto this valuation. Re. expenses rising while growth is slowing, well, as Martha Stewart would say, this is a "good thing", because it means the company's investing in the future. Despite only 25% growth for this year, the stock is trading in anticipation of 30% (or more) growth in FY98. Re. split, the main reason is simply to keep the stock price in a psychologically "nice" range. Historically, it should have split once it cleared 120. I think we haven't got the split mainly because the stock's recent run above that level is pretty speculative, and management's very conservative. I'm hoping for a 2:1 split by January if the next two quarters are solid and the stock holds between 130-140.

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