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

To: johnd who wrote (25666)	7/7/1999 7:52:00 PM
From: t2	Respond to of 74651

Johnd, i think it is just the DOJ case that is holding back MSFT. Otherwise, this stock would be a lot higher. IMHO, it will be a short term phenomena (6 months). The fact that it is still able to move up in the midst of its legal problems is just an indication of its very strong fundamentals. Just watch what happens when we hear our next story of rumors of settlement in the case. There could be about a $5 move just when we hear of talks taking place. A settlement would surely be worth at least another 10 in a very short period of time. That would also clear the way for bigger moves upward---kind of like the IBM moves. The cloud hanging over this stock would just disappear and the short interest would also go down. IMHO, a settlement without a determination of whether MSFT is a monopoly would clear the way for huge gains---bigger than IBM or Sun is experiencing now. Notice how the unearned revenues (about $15/share) are getting a lot of attention. Maffei has stated that he does not expect that account to reduce in the foreseable future (i think that is what he said). Another motive for the reserves is to attract and keep new employees for a longer period of time with regular big annual gains rather than huge gains one year followed by a year of declines. That would not appeal to the highly paid tech workers. This is telling me that this stock is relatively undervalued. One day it will be fairly valued---so if you are a long term shareholder, you should get better returns with MSFT than IBM or SUNW in the long run. Of course we options traders/gamblers have to worry about the short term moves. JMHO