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Technology Stocks : How high will Microsoft fly?
MSFT 484.52+1.6%10:57 AM EST

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To: Byron Xiao who wrote (16350)2/18/1999 4:42:00 PM
From: t2  Read Replies (3) of 74651
 
I agree with you on the legal team. They were better off settling the case at the start. Now they have opened up a can of worms.
However, I believe all this has been factored into the price and the stock is oversold---once we get to March, the big moves should start.

Don't think that just because MSFT is losing big that the DOJ is going to seek stiff penalties. These kinds of decisions won't be supported by all the states and politicians who are being consulted (ie white house). I am sure the DOJ will try to "correct" things without seriously changing the competitive landscape. They will try to determine the effects of their solution on the company, competition, and consumers. Remember in the end the DOJ is neutral. They won't want to appear to be coming down on companies that are very competitive (I am sure the DOJ considers MSFT fiercely competitive). Remember in the global market, only these types will survive.
THis is my reasoning why MSFT will do OK at the remedy stage.
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