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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator

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To: Charles Hughes who wrote (20793)9/1/1998 8:46:00 AM
From: Reginald Middleton  Read Replies (1) of 24154
 
<1. Is there still anybody here that thinks worrying about the asset value of a company, to provide a price floor for a stock in a theoretical (when we were arguing about it) market downturn is a ridiculously obsolete concept. Or that thinks a market downturn, or earnings, is an obsolete concept. If you haven't dropped out your window yet, could you please step up to this one. You know who you are.>

I wonder if you are talking about me. Asset value plus prospective discounted cash flows equals the value of your company, nothing more to it. Earnings are not obsolete, they just were never that good a proxy to begin with, see rcmfinancial.com

<4. I was wondering about that forward valuation of MSFT at a split-adjusted 300 bucks somebody was promoting? Care to comment on which decade you meant, or which century?>

You should break out your calculator and see if we have arrived yet. Pessimism without the power of observation is dangerous. You have not been on the board long enough, but MSFT is up to nearly 100 (from about 28 on a split adjsuted basis since I started posting on this forum) after a 20+% broad market correction. If you are not convinced now, you will never be.
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