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

To: Frank Ellis Morris who wrote (34159)	11/17/1999 7:50:00 PM
From: Teflon	Respond to of 74651

I'm not surprised, Frank, because MSFT IS UNDERVALUED! Unfortunately, valuation is not driving the stock price right now, momentum trading and the press is dictating the moves. This is a tricky time to own the stock (and I own a bunch of it), and I think the patient will be rewarded. My concerns are centered on the institutional holders, however, it's becoming just too easy to buy into other technology stocks in the market right now that offer similar return rates to MSFT's historical performance, without all the negativity. The next election cannot come soon enough :) Teflon

To: Frank Ellis Morris who wrote (34159)	11/17/1999 9:22:00 PM
From: John F. Dowd	Respond to of 74651

Frank: As my kids would say Uh duuuhhhh! I am glad that spin got on the TV though because there was some other jackinapes telling Maria "Butter"omos callers that MSFT just was too old and not the stock of the future although they had sound mmgmt. or some such other patronizing drivel. JFD

To: Frank Ellis Morris who wrote (34159)	11/17/1999 10:25:00 PM
From: Ian Davidson	Respond to of 74651

Frank....yes they did. The transcript follows from the NBR: JIM GLASSMAN, AUTHOR, "DOW 36,000": A Federal judge lowered the boom with his initial ruling on Microsoft. But where do investors go from here? Microsoft is the largest company in terms of market value in the world, worth nearly half a trillion dollars. The stock is down 13 percent from its high, but don't feel sorry for shareholders. Prices more than quadrupled in the past three years. And why not? Profits have been rising at an annual average of 35 percent since 1994. Well, look at it this way, in 1990, the company earned $171 million. This year it will earn over $8 billion, despite more than $3 billion in spending on research and development. Two questions about Microsoft. Will the antitrust suit hurt the business? Not materially. But it is certainly a distraction for managers who should have their minds free to work on more important things like making great software. Second, and more important, will the company's core product, operating systems, become obsolete in an Internet age? Maybe. Bill Gates understands the challenge. He is properly paranoid about his competition. In our book, "Dow 36,000," my co-author Kevin Hasset and I argue that Microsoft is drastically under priced, even if earnings growth falls by half. The book was written before the judge's pronouncement but it doesn't change our minds. Of course, making Microsoft your only tech investment would be a huge mistake. Making it your biggest wouldn't. I'm Jim Glassman. Ian