How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 485.49

+1.8%

3:59 PM EST

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To: Bearded One who wrote (10188)	8/19/1998 2:40:00 PM
From: Gerald Walls	Read Replies (1) of 74651

So earnings and cash flow and what not are just help in guessing how much is left at the end of the day to distribute to shareholders. I don't think that Microsoft has or will ever have 300 billion dollars of distributable assets. Thus, the stock in my view is overvalued, and in the 'Mark McGuire baseball card' category. Don't you think it's a bit absurd to attempt to value any going concern with a positive return on equity at liquidation value? This is by definition assigning a zero return on those assets. This is the sort of analysis you'd use to evaluate a bankruptcy play. If you think the only reason to own a stock is dividends or buy backs then stick to utilities.

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