Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: KeepItSimple who wrote (35553)	12/16/1999 10:06:00 AM
From: Tony Viola	Respond to of 74651

KIS, Once a stock has left all fundamentals behind, WHY DOES IT GO UP? Aren't "investors" at that point simply agreeing to play a giant game of chicken with each other, using the letters MSFT as nothing more than a collective place holder for their casino chips as they bet that in a few minutes someone will come along and be willing to pay even more to play the game? Jealous? If you can't beat'em, join'em. Otherwise, let people who did jump on the gravy train enjoy without sending in green-eyed monster based remarks.

To: KeepItSimple who wrote (35553)	12/16/1999 12:10:00 PM
From: Valley Girl	Read Replies (1) \| Respond to of 74651

You've missed the whole point of investing in growth companies. You're looking at the past and present rather than to the future. MSFT and other techs are reinvesting profits in their businesses (and related ones), building shareholder equity. Someday this growth spiral will end, but it's probably a long long way in the future. When it does end, companies can then start returning profits through dividends or stock buy-backs. Dividends are old-fashioned. From a tax standpoint, you're much better off if a company re-invests any profits it has or, if it can't find anything worth doing with the money, buying back shares. That way your money keeps compounding tax-free through the magic of capital gains.

To: KeepItSimple who wrote (35553)	12/16/1999 11:27:00 PM
From: ed	Respond to of 74651

Well , your sour grape did not taste good !!!!

To: KeepItSimple who wrote (35553)	12/17/1999 6:19:00 PM
From: John F. Dowd	Respond to of 74651

KIS: You might have a point regarding dividends. But the American investor has entered into a compact with the market. As long as Uncle Sam wants a piece of the dividend this is seen by the investor, market and corporation as a poor use of capital. So we have all agreed to take our dividend out of borrowing against the equity of the stock or selling a little bit of the equity more slowly than the growth equity is growing, thereby taking advantage of the capital gains tax. If the government would get its hand out of our savings (investment) pocket we would see more dividends and more rationally devised investing schemes. JFD