How high will Microsoft fly? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly?

MSFT 487.79

0.0%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: taxman who wrote (20482)	4/13/1999 8:26:00 PM
From: t2	Read Replies (1) of 74651

taxman, that seem like a high estimate for the quarter. I don't remember what analysts did with their estimates after Maffei's conferennce call. However, they should have reduced their estimates by the amount of the effect of the revenue deferral. Although he stated that MSFT should make up the difference from investment gains (or some language like), it is not operating earnings to the best of my knowledge. I think we are headed for a little bit of confusion if all the analysts did not reduce their estimates for operating income---it would mess up the consensus for the quarter. I have not really started looking into consensus estimates but I beleive it well below 40 cents. My point is that unlike Intel, MSFT is going into a great June quarter. However, i expect them to be cautionary anyways. Why? I believe they would want to issue employee stock options at a low price on July 1/99. The same goes for the selling of puts. I think most analysts that follow the company will see through their caution this time. They were fooled with office97 but i don't believe it will happen this time. IMHO, a selloff this time could relate more to the trial----this effect should not be long term anyways. BTW---I am setting myself up for the options buy of the year this June/July---looking for way out of the money calls at that time.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next