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

To: t2 who wrote (29289)	9/8/1999 7:26:00 PM
From: DiViT	Respond to of 74651

Microsoft, Softbank invest in Asia BY BRUCE MEYERSON AP Business Writer sjmercury.com NEW YORK (AP) -- Microsoft and Softbank of Japan are investing in a venture with Global Crossing to build a fiber-optic network in Asia for high-speed Internet, voice and video communications. The 11,000-mile web of land and undersea cables will connect in Japan to Global Crossing's trans-Pacific links with the United States and its fiber networks in the Americas and Europe. Microsoft and Softbank, an early investor in Yahoo! and other hugely successful Internet ventures, will each contribute $175 million in cash to the $1.28 billion project. The companies also committed to buy a combined $200 million worth of network capacity from Global Crossing over three years. For Global Crossing, the investments by shrewd technology players like Microsoft and Softbank gave a much-needed vote of confidence to Global Crossing's plan to build a worldwide fiber-optic network. Coming into Wednesday, Global Crossing's stock had lost two-thirds of its value since May, hit hard by a blowout in Wall Street's Internet rally and concerns about how much a price war in long distance rates will hurt merger partner Frontier Corp. Global Crossing was forced to renegotiate that merger last week, increasing the amount of stock it will pay for Frontier, which also owns a fiber-optic network in the United States. After Wednesday's venture was announced, Global Crossing's stock jumped 26 percent, rising $5.31 1/4 to $25.62 1/2 on the Nasdaq Stock Market. The investment by Microsoft, meanwhile, was the latest bid by the software maker to ensure its place as the Internet becomes a venue for telephone calls and television in addition to data traffic, e-mail and Web surfing. Earlier this year, Microsoft invested $5 billion in AT&T, which plans to provide various telecommunications services over the cable TV networks it recently acquired. As part of the deal, Microsoft will provide software for set-top boxes deployed in parts of the AT&T cable network. At a press conference Wednesday, Global Crossing officials repeatedly stressed the growth potential of the Asian economy, which has been recovering from last year's financial crisis. ''Asia has half of the world's population and is the fastest growing region in the world, but it's telecom infrastructure has just not kept up,'' said Gary Winnick, founder and co-chairman of Global Crossing. Hoping to capitalize on an early start in such a huge market and Wall Street's hearty appetite for Internet-related ventures, the partners said they would likely sell stock in Asia Global Crossing within two years. Bermuda-based Global Crossing will initially hold a 93 percent stake in the venture. Microsoft and Softbank will each own an initial stake of 3.5 percent, but those stakes will expand if the market value of Asia Global Crossing exceeds $5 billion, reaching as much as 19 percent if the venture's worth tops $7.5 billion. Global Crossing will give the new venture its development rights in the Asia-Pacific region and its 57.75 percent share of Pacific Crossing 1, a separate partnership that's building a 13,000-mile network under the Pacific Ocean. Jack Scanlon, vice chairman of Global Crossing, will be chief executive of Asia Global Crossing. The new Asian network, which will be built in two phases, would connect Japan, China, Singapore, Hong Kong, Taiwan, South Korea, Malaysia and the Philippine. The first 6,300 miles of cable are expected to be ready by December 2000, and the remainder about a half year later. The partners hope to expand the network to Thailand and Indonesia down the road. (PROFILE (CO:Microsoft Corp; TS:MSFT; IG:SOF;) (CO:Global Crossing Ltd; TS:GBLXV;) (CO:Frontier Corp; TS:FRO; IG:TLS;) (CO:AT&T Corp; TS:T; IG:CMT;) )

To: t2 who wrote (29289)	9/8/1999 8:09:00 PM
From: djia101362	Read Replies (1) \| Respond to of 74651

t2000, it looks like you are still very bullish on intc despite the fantastic run it has had the past 2-3 months. why do you suppose msft has failed to mount any kind of charge that would compare to intc? if you look back at where msft was trading in january after the earnings report ($175), the stock has actually not done a whole lot since then, up only about 5% while the dow and naz are up much more. if you were lucky enough to pick up msft when it dipped into the mid $70s in may, then obviously if looks like msft has had quite a nice run itself but over the last 7 months, that really is not the case. having been a follower of msft for many many years, i have noticed that this stock is capable of making up ground very quickly, and in fact a big chunk of msft's annual gains often occurs over a very short period of time. with that in mind i would not be surprised if a 50% - 75% move was on the horizon within the next 3-6 months. but if you do look at the 5% increase over the period i have mentioned, it is probably one of msft's longest periods of underperformance relative to the market.

To: t2 who wrote (29289)	9/8/1999 9:20:00 PM
From: Bill Holtzman	Read Replies (1) \| Respond to of 74651

>>major purchase on MSFT January or April call options<< Who needs day trading? You're back in "the game"! Good luck bro'.