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Technology Stocks : How high will Microsoft fly?
MSFT 478.52-2.8%3:59 PM EST

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To: Reginald Middleton who wrote (304)10/22/1996 7:29:00 PM
From: Michael Wan   of 74651
 
Hi, Regi. I went back and read your model again. My feeling is that the model about msft is too hypethetical. You assumption for a 26% average growth for msft is very difficult to accept. You almost kept the cost and expenses constant for the next 10 years and this is hard to accept too. When a company is getting too big, it will be very difficult to keep 26% growth. Msft will have difficulty in keeping a 15% growth when its revenue reaches $30B, which it will reach very soon according to your projection. Also I don't know why nscp has only three years valuations in your model. Also I think market is efficient, even for the story stocks. People just have different valuation models. I will prefer to be rich than famous. Good luck. Michael
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