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Technology Stocks : How high will Microsoft fly?
MSFT 485.910.0%2:09 PM EST

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To: Mike McFarland who wrote (5048)2/7/1998 1:13:00 PM
From: Reginald Middleton  Read Replies (1) of 74651
 
<When the market capitalization of Microsoft stock surpasses General Electric I will have to come back to this thread and say how wrong I was, how I should have finally "invested" too.>

You don't measure companies by market capitalization. It is utterly useless. General Electric issues debt, are you including GE debt in your market cap comparison? What does the comparison mean? What you should be comparing is sales, sales growth, economic profit, rate/return of investment and the cost of capital (risk).

I created a list of common questions concerning Microsoft's valuation and performance. The questions are linked to analyses in PDF format. I invite you to come by and visit - rcmfinancial.com

<For now, I am again "putting". Heck, I'd rather put AOL but the premium on the MSFT puts is a lot less. I guess everybody assumes that Microsoft is invincible, maybe it is. But at least in the short
term the stock is overbought.>

I would not "put" Microsoft if I were you. There are a lot of weaker companies to gamble with than Microsoft. Why do you think the premium of the MSFT puts are so low? Think about it.
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