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

To: John F. Dowd who wrote (27231)	7/23/1999 8:52:00 PM
From: JP Sullivan	Read Replies (1) \| Respond to of 74651

Microsoft now has a cap of just under $500 billion. Ten times that is $5 trillion.You heard it here first: NO FREAKING WAY. If it's a trillion, though, that would be terrific." Never say never. Ten years ago, would anyone have believed a $500 billion market cap? If all else fails, we could always redefine a billion to mean one million million (10^12), like the Brits of old. In that event, MSFT would only have a market cap of half a billion. Peanuts! Now, imagine the possibilities of that semantic makeover.. Winston

To: John F. Dowd who wrote (27231)	7/23/1999 8:58:00 PM
From: t2	Read Replies (4) \| Respond to of 74651

JFD, I agree with that assessment. If it is true that the lowest price in the months of July and August is what the employee options are based upon (i wish someone could confirm it as fact), then it is reasonable to assume the company is using Y2K as a way to bring more uncertainty to earnings in the hope of getting a drop in the price. I had sold all my remaining positions at the open today and starting buying back at 90. I want to use these 2 months for accumulating. Still not sure it is worth hanging on to the stock unless it is for tax reasons. As that is really not an issue for me, i hope to trade the stock. Sooner or later this stock will hit a very strong support--could be 90 but i am willing to guess 80 to 85 simply based upon my guess that the market will keep going south for a couple of months. However, if we go sideways, MSFT should not drop below 90. At the moment, it is basically going with the market swings (maybe starting next week). They selloff due to management comments may be over by now. In addition, if MSFT wants the stock to drop, it would also make sense that they would not be aggressively repurchasing their stock right now. The one thing that puzzled my about last quarter was that they repurchased 18 million shares. I found that number to be very large----sure is not a bearish indicator on the stock from top management. Another thing to remember is that MSFT sells equity put warrants on its stock. If the stock corrects enough, they could sell these for a good profit. The more it corrects, the more they get from these sales. Finally, remember what Maffei said during the earnings conference. I don't remember his exact words but he implied that existing employees would continue to benefit from new employee options. That is obviously a very bullish outlook---being honest for a change. Finally again-----MSFT has so many weapons if it wanted to improve shareholder wealth. Tracking stock and splitting up the company are options in the event shareholders are not benefitting. Finally (the last time). Wait until the last quarter of 1999, we should see this stock accelerate rapidly. THe question for traders is when to buy and sell----for long term holders, don't worry about it. Good Luck to MSFT holders.