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Technology Stocks : How high will Microsoft fly?
MSFT 492.01+1.3%Nov 28 12:59 PM EST

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To: Brian Malloy who wrote (5666)4/2/1998 8:43:00 PM
From: johnd  Read Replies (1) of 74651
 
Despite the predictability and invinsibility that MSFT carries
with it, the recent upsurge in the stock price from 65 at the
begining of the year to 91 today represents nearly 45% increase
per quarter (or 200%+ annualized, compounded). Such increases
cannot be sustained for the company that is growing at 35 - 50%
rate at the maximum.

So the stock price will be a laggerd for the rest of the year.
Possibly will go up to 110 in the next 9 months or about 20% from
hear on.

I don't like this kind of sudden surge. I would rather have the
stock steadily appreciate 10% per quarter or about 50% year.

Instead of Buffets Margin of error, in this case the margin of
upside is stunted in the near term. I don't feel like throwing
in fresh money at these valuation levels.
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