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


To: Bilow who wrote (34532)11/21/1999 8:32:00 AM
From: Reginald Middleton  Read Replies (1) | Respond to of 74651
 
That is not how corporate valuation works. Most companies are valued by management and product inventory. If MSFT had a billion dollars in cash, that billion gives them XX billion in real options to manipulate at will. These option are worth either more, equal or less than a billion dollars, given the situation and oppurtunity exercised. MSFT has proven the ability to exercise their real options with greater ability than their competition, which makes a billion dollars in MSFT hands worth more than a billion dollars in your hands or a billion dollars in the bank. Using your ideology, all companies should be valued at a multiple of 1 based upon the amount of money they have in the bank. Bill Gates is worth more having $100,000 in the bank than Ed Slovowiczh (whoever that is:-) is worth with $5 million in the bank, due to expertise, connections and proven execution ability.



To: Bilow who wrote (34532)11/21/1999 1:31:00 PM
From: ed  Respond to of 74651
 
As long as they have that money on hand, they can use that money any time they want to make money !!! How did you find out that Microsoft borrowed 10 Billion ? Microsoft had made money quarter after quarter, where did that money go ?



To: Bilow who wrote (34532)11/21/1999 10:02:00 PM
From: Bearded One  Read Replies (1) | Respond to of 74651
 
Thank you. What amazes me is that there are people, many many people, who are placing thousands or tens of thousands or even more money into the market without understanding the basic concept that I tried to point out and that you explained so well. And even though it grates to see such foolishness rewarded, I will not be happy at the ruin that will ensue when the bubble bursts.