How high will Microsoft fly? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly?

MSFT 474.11

+0.4%

2:29 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: M31 who wrote (6357)	4/30/1998 10:35:00 PM
From: Deliveryman	Read Replies (2) of 74651

You assume MSFT just goes up at the rate it has in the past. Maybe it will... BUT you have to think bigger... you can start with 100 shares, but you have to use margin to buy more shares as the value goes up... So in 14 months when the value doubles, you buy 50% more shares... then the stock splits at 16-18 months. So in 24 months you have 300 shares at about $80 a share (street value $24,000). 5 times in 10 years year 1 100 shares year 2 300 shares year 4 900 shares year 6 2,700 shares year 8 8,100 shares end of year 10 -- 20,300 shares approx street value $1,624,000 Now you have borrowed about a 30% of the value on margin...but that still leaves $1 million.... Capital gains takes a big chunk, and whats left can't buy what you think it can.... LOL

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next