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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Dwight E. Karlsen who wrote (1055)	10/25/1999 6:13:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 19219

Dwight, i agree with you that MSFT deserves a premium due to it's quasi-monopolistic status and the resulting earnings visibility. i would even go as far as to say that MSFT is certainly fairly valued, if not slightly undervalued relative to other tech stocks. but then i think that the whole sector is grossly overvalued...it's simply gotten ahead of itself. the incredible valuations accorded to some stocks on promise alone are indeed absurd in some cases...take Friday's IPO, how can a company with $11 million in revenues and $20 million in losses be worth $ 15 billion? what exactly is being discounted here? this is not a market anymore, it really is a casino. when Ballmer made his comments about tech stocks valuations, howls of protest could be heard far and wide, and some even attributed sinister motives to his comments. i'm inclined to think that he merely spoke his mind...even though earnings growth for many hi-tech companies has been spectacular in recent years, most of the gains in their stock prices have been due to 'multiples expansion'. that's fine as long as interest rates are falling, as discounted future earnings growth becomes more valuable in the here and now, but rates and stock prices have basically gone in opposite directions for over a year now. thanks for the MSFT accounting update... regards, hb