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Technology Stocks : How high will Microsoft fly?
MSFT 496.920.0%Nov 7 9:30 AM EST

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To: Big Kahuna who wrote (5220)2/24/1998 1:24:00 PM
From: Joe Sabatini  Read Replies (1) of 74651
 
>>are athletes worth the money they are paid?

That's not a good analogy. Sports teams are generally profitable after expenses (including players' salaries). And team owners generally do not pay athletes what they might be worth years down the road. If you buy 100 shares of Microsoft today, about 1/16 of that is actually worth something.

What's really criminal is that so relatively little new money flowing into Microsoft shares can generate so much of an increase in market valuation. If it were up to me, there would be much more of a 1:1 correspondence between the amount of money actually flowing in and the amount by which the market cap of a stock increases. You'd of course have to leave some gap for the market makers.

Joe S.
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