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Technology Stocks : How high will Microsoft fly?
MSFT 507.49-0.6%Nov 17 3:59 PM EST

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To: Ed Schultz who wrote (5603)3/28/1998 1:48:00 AM
From: Moominoid  Read Replies (1) of 74651
 
1. If you short, you lose.

So far on four attempts I'm ahead on shorting MSFT - 2 wins two losses. See my last post.

2. The number for BillG must not be split adjusted. He has closer to 22%.

That's what I thought.

4. Microsoft is not overvalued. I heard a top analyst (from DMG) state recently that he thinks Microsoft is undervalued!

I'd like to see what quantitative model he uses to come to that conclusion. Either he doesn't have one or it must be theoretically inconsistent or the assumptions are all pushed in a favorable direction. Microsoft is undervalued only in the sense that people are prepared to buy shares in it because they know other people will take them off them when they want to sell at a higher price. I'd argue that that is unsustainable in the long-run like most other speculative bubbles.

David
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