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Technology Stocks : Citrix Systems (CTXS) -- Ignore unavailable to you. Want to Upgrade?


To: MikeM54321 who wrote (7766)4/2/2000 1:04:00 PM
From: Chuzzlewit  Respond to of 9068
 
Mike, my answer was contained in this portion of my post:

... we have a future value of the stock of $17.36/.06 = $289 per share, and a present value of $161.52.

Stated explicitly, yes, I would put just about everything I owned in such a situation because it would provide me with a risk-free rate of return of 16.1% per annum. I would use all of the margin debt I could which would double my earnings (before interest) to 32.2% per annum.

*****

Re: CSCO and MSFT. I don't know, because I don't recall the growth expectations at the time. I suspect that the valuation for MSFT would have been somewhat disturbing and I simply don't recall my thoughts on CSCO at the time.

TTFN,
CTC