How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 485.36

-1.7%

3:01 PM EST

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To: rudedog who wrote (11117)	10/4/1998 10:15:00 PM
From: johnd	Read Replies (1) of 74651

I missed the late September to early October decline on MSFT from 114 to 104. If was so smart to be able to predict it, in my positions, I would have made out well. I was expecting a pre earnings release rally to 126 by end of October. That could still happen. When it gets there I am hoping to write the January covered call or so. It could get excercised, but that is OK. What happened during the last few days to make it go down from 114 to 104 are primarily outside MSFT. The other two factors i.e. overall market and the software industry was in bad shape during last week. Last weeks 3% decline in DOW and the downgrade on peoplesoft hurt MSFT. There is also a possibility that money managers window dressed to close of last quarter and then shed some for profits. Short term movements are very hard to predict. So one should be prepared if MSFT hits 95 during the next few days. But the chances are reasonable for it to get back to the 63 to 66 PE on Ocotber trailing EPS of 1.95 level or about 124 to 130. I think it won't happen until earnings are actually announced. When is EPS announcement? Anyone know? Please post johnd

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