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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Sonki who wrote (25438)	7/2/1999 12:27:00 PM
From: johnd	Read Replies (2) \| Respond to of 74651

MSFT is relatively cheap at this point. Compare it to CSCO. Both have about about 1.45 in EPS for FY99, ending in summer 99. But CSCO is trading at 130 (pre-slit) where as MSFT is at 92. Considering CSCO faces stiffer competition from LU and NORTEL I think MSFT is relatively cheaper. If you consider MSFT's yearly performance from last couple of years, there is solid rally in the first half till July and then modest gains in second half. Here is history 1997: Jan1 price: 95 July Peak: 153 Gain: 60% in first half 1998: Jan1 price: 65 July Peak: 120 Gain: 85% in first half 1999: Jan1 price: 70 July 2nd : 92 Gain: 31% in till now. I think this rally will carry till 110 or about 57% gain in first half. We shall see