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

To: Captain Jack who wrote (38342)	2/22/2000 9:37:00 PM
From: SC	Read Replies (1) \| Respond to of 74651

The future valuation hinges upon what remedy will be imposed. This (the remedy) is the uncertainty that must be resolved before anyone can put a value on this company if the decision is upheld. Why invest in an uncertain situation when there are other promising issues that don't carry the unknown handicap of this situation? If the remedy is crafted in a way that is easy to evaluate, the price could go up, maybe even explosively over the course of several sessions. Of course, it is possible that a remedy could be imposed that is confusing or difficult to evaluate. In that case the price of the whole or of the sum of the parts will probably go up a lot more slowly. This situation adds risk . More risk equals less demand (which equals lower stock price than would otherwise be the case) as you effectively exclude a large number of less risk tolerant investors who previously favored this stock as a low risk, high return investment. At the same time, this is no longer a stock that interests the investor who has high risk tolerance and favors stocks that haven't hit the radar screen of the big institutional investors yet but that have the potential to become 800 lb gorillas. The overall effect is fewer interested investors chasing too many shares of stock to support the price. The price is therefore in limbo until we see the remedy (whether or not it is upheld on appeal). The outcome is simply not as important as knowing the details of the potential outcome either way. Steve