PC Sector Round Table Message Board

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Technology Stocks : PC Sector Round Table

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To: Yogi - Paul who wrote (581)	7/16/1998 7:03:00 PM
From: Pierre-X	Read Replies (2) of 2025

KO is definitely flying high relative to historical valuation yardsticks. CSCO still has growth ahead of them. GE I have no clue. DELL has some significant micro factors against them. To be fair, some of these factors have been against them for some time but they have still prevailed. But this is not the topic at hand. What I'd like to discuss with the thread is MS. Are they going to: (a) Grow at double digit rates forever? (b) Grow at double digit rates for the foreseeable future? (c) Maintain growth for the near term? (d) Suffer a short term setback? (e) Suffer a long term setback? The big buns they have in the oven right now are NT 5 and CE. Are the potential of these products sufficient to allow MS to continue on to a new era of growth? Trailing sales are ~$14BB. In order to grow sales 20%, $2.8BB in sales has to come from somewhere. With new PC unit sales growth in the 15% range, where will this revenue come from? Windows CE is a nice gadget but with total unit sales in the "palm" market this year under 5M units, even with 100% market share CE revenues from "palm" machines can't hit $250M -- a drop in the bucket.

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