Silicon Investor (SI) -- The First Internet Community

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? -- Ignore unavailable to you. Want to Upgrade?

To: Catcher who wrote (26797)	7/19/1999 10:06:00 PM
From: t2	Read Replies (1) \| Respond to of 74651

Another story suspecting the analyst meeting as the announcement of a tracking stock. That is one reason why this stock can move up short term. news.com Microsoft: To track, or not to track? By Ben Heskett Staff Writer, CNET News.com July 19, 1999, 5:20 p.m. PT Microsoft executives said the company is "reviewing" splitting off its Internet holdings as a separate tracking stock but today hedged on a timetable for disclosure of such a plan. Executives noted there has recently been widespread "speculation" concerning the creation of a "tracking stock" or "structure," as chief financial officer Greg Maffei characterized it, but they gave no indication of what the company's plans would be for such an offering going forward. Under the rumored proposal, Microsoft would separate its various Internet holdings--such as its Hotmail free email service and Expedia online travel booking site--into a tracking stock to bolster its value and possibly use the stock as currency for acquisitions. "We are reviewing such a structure but have no imminent plans to announce such a structure," Maffei said during the company's announcement of year-end earnings today. In response to a question concerning the tracking stock scenario, Maffei said, "I don't want to be any more specific." In creating such a stock, Microsoft would potentially be able to reap the high value currently associated with Internet-related offerings and could attract an executive to run the series of sites--an elusive search that has turned up no one after eight months. Some reports have pegged announcement of a tracking stock for the company's MSN businesses for Thursday of this week, when the financial analyst community will gather in Seattle to be briefed on the state of the company. Microsoft shed a portion of its Internet sites earlier today, trading the city guide portion of MSN Sidewalk for stock and warrants in Ticketmaster Online-CitySearch. Related news stories • Lucent, Microsoft drive markets lower July 19, 1999 • Coalition accepts Microsoft-based "metadata" standard July 19, 1999 • Microsoft hones its Net plan July 19, 1999 CNET Resources Online investing

To: Catcher who wrote (26797)	7/19/1999 10:32:00 PM
From: Stormweaver	Respond to of 74651

I think the concerns are overstated. Looking at this IDC chart seems to show that PC sales look quite healthy as of June 30 1999; also nice pickup in Japan and Asia Pacific which is a good market sign(decline in Latin America though): idctracker.com I think we should see increased sales as the new market segment of free-PC and sub $500 PC's picks up steam. These will run MSFT unless the companies giving them away want to spend untold $ in support costs and other headaches. The other driving forces will be households buying a 2nd PC to increase net time for family members and of course people upgrading to new machines (K7 & PIII). W2000 should do well selling to all existing 95/98/NT desktops. Finally with n-way x86 iron being available this will allow MSFT to expand into the mid server range and compete with UNIX; not to mention already making it's presence in the UNIX workstation market. If there is a contraction it will probably be in server sales; IT departments being less likely to change their business environment until after Y2K. /James