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Technology Stocks : How high will Microsoft fly?
MSFT 472.22-1.3%Nov 21 3:59 PM EST

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To: LindyBill who wrote (13411)12/21/1998 3:16:00 PM
From: johnd  Read Replies (2) of 74651
 
Anyone buying MSFT (or DELL or CSCO) at these levels, I feel
you should be prepared for a potential correction to 120 range
on MSFT at some point in the next 6 months and potentially
having to wait till end of 1999 for breakeven.

Even thought I don't agree with wall street estimates, look at the
current PEs based onthem.

FY 99 estimate 2.35. 140/2.35 = 60
FY 00 estimate 2.80. 140/2.80 = 50
Current trailing PE = 71 (10 yr highest ever for MSFT)
Price to sales = 24 (Life time high)

so much for valuation risks.

I am buying protective positions
johnd
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