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Technology Stocks : How high will Microsoft fly?
MSFT 486.83-1.1%3:59 PM EST

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To: DownSouth who wrote (18511)3/22/1999 3:48:00 PM
From: johnd  Read Replies (3) of 74651
 
Even though I am mostly long term holder, reading and
participating in the thread at times makes me focus on
shorter term option. So I went on a basket of options.
In my accounts I bought

Some MSFT April 140s,
Some MSFT July99 175
Some MSFT July99 160
Some MSFT Jan 00 105
Some MSFT Jan 00 150

I know I have to close most of these positions in the
next month or so. I also know that MSFT will have about
2.60+ in trailing EPS from this Q till June end. The hard
part is to predict how high will the PE be. If 76, then
about 100 post split is possibly. Another hard part is
when will it get there.

I am looking for disposing off positions if it gets to
95 - 100 range (post split) during week of March 29th.
The big concern here is potential further run up into
earnings and also the one after a blow out earnings, similar
to last quarter.

The market already knows that Q4 is going to be BIG,
really BIG.
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