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

To: Tony Viola who wrote (35803)	12/23/1999 7:33:00 PM
From: John F. Dowd	Read Replies (3) \| Respond to of 74651

Tony and the other folks who think Maffei is gifted above all men: Here is the opinion of PW: NEW YORK, Dec 23 (Reuters) - PaineWebber said it raised its price target on Microsoft Corp. on Wednesday to $150 a share from $120, advising investors to buy on weakness in its shares. Microsoft announced the resignation of its chief financial officer Greg Maffei on Wednesday. -- Analyst Don Young said, "Departure of CFO is a loss, but unlikely to effect operational performance. We never like to see CFOs depart, but we doubt this situation is signaling a potential problem. -- Said incoming CFO John Connors appears stronger than departing CFO. -- Shares were trading at 117-1/2, down 1/16 in early Nasdaq trading. And here is what another brokerage firm said: CSFB Analyst Unfazed With Resignation Of Microsoft's Maffei (MSFT) (NewsTraders.com)--Credit Suisse First Boston analyst Michael Kwatinetz sought to allay any anxiety that might follow the news of Microsoft (MSFT) CFO Greg Maffei's resignation, pointing out that rumors of such a move have circulated for over a year. Kwatinetz reiterated his "strong buy" on the stock, commenting that Maffei's replacement, John Connors, is an experienced, highly respected executive with almost 11 years at Microsoft under his belt. The analyst said that Connors has functioned in several key financial and operational management positions, including corporate controller, CIO and head of the worldwide enterprise group. Maffei will leave Microsoft to become CEO of pre-IPO fiber optic concern Worldwide Fiber, although he will stay on at Microsoft through January to ensure a smooth transition. Kwatinetz, who feels strongly about the depth and strength of Microsoft's management, predicted that the move will not have a meaningful impact on the company, and he feels Microsoft will meet or beat his $0.43 earnings-per-share estimate for the second quarter of 2000. Concerning his rapport with analysts it was the analysts who first noticed his less than ebullient attitude after the the MSFT reorg. What was the big deal with ATT. It could be argued that he bought into a convert preferred that had too high a strike price ($75.00). The didvidend was not bad 5% but not spectacular either. Don't kid yourself about who passes on the deals. MAffei was not the sole input or say in any of the outside investments. Tony__Here is what JDSU does: JDS Uniphase Corporation designs, develops, manufactures and markets components and modules for fiber optic telecommunications and cable television (CATV) systems, laser subsystems and laser-based semiconductor wafer defect examination and analysis equipment. JDS Uniphase's telecommunications and CATV divisions design, develop, manufacture and market semiconductor lasers, high-speed external modulators, transmitters and other components for fiber optic networks. Now what does Maffei's new company do? It says it is in the in the telecom business for 12 years, selling access to its fiber optic network to Bell Canada and other carriers. This is hardly Hi tech. This is a black fibre carrier. Actually in all the companies you mention in the fibre optic market you like the rest of the worl neglect the one with real customers real revenues and real earnings CIEN. SCMR and the rest have yet to prove themselves. I am surprised by the real understanding you guys have about cos. outside of your company's areas of expertise. JFD