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

To: johnd who wrote (25789)	7/9/1999 3:19:00 PM
From: t2	Respond to of 74651

I wonder if we end up with a flurry of short covering and buying ahead of earnings. On the other hand, selloff before most of the tech stocks report earnings would not be that unusual either given the current trends. At this point i think a late day short covering along with buying before we hit next week and the real earnings season is the likely scenario. Just like flipping a coin.

To: johnd who wrote (25789)	7/9/1999 3:23:00 PM
From: keithsha	Read Replies (1) \| Respond to of 74651

I still don't get how you calculated PEG 1.0 OR 80 * 1.45 => 116. Is 80 the projected EPS growth? and 1.45 projected EPS? keithsha

To: johnd who wrote (25789)	7/9/1999 3:26:00 PM
From: codawg	Respond to of 74651

> Most high tech leaders trade at PEG of 2.0 to 3.0. But not MSFT for some reason. People on this thread think it is DOJ. But I find it hard to believe as everyone knows the DOJ suit doesn't matter < I believe that MSFT is a vicitm of it's own conservative (sandbagging) guidance and its size. First Call estimates for long term EPS growth at CSCO is 32%, at DELL 34%, while for MSFT it is 27%. If MSFT were to truly achieve "only" 27%, then the lower PEG would be justified. Of course, I don't believe that they will achieve 27% EPS growth anymore than you do. If you had looked 12 months ago, you would have seen similar numbers, but MSFT is currently on track for a minimum of 40% EPS growth in FY99 and perhaps as much as 50%