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

To: Jacob Snyder who wrote (42322)	4/17/2000 4:20:00 AM
From: SunSpot	Read Replies (2) \| Respond to of 74651

On the internet, MSFT doesn't have the first mover advantage and it's ability to use market share in existing markets to gain market share in new markets is restricted. A high PE value indicates, that the earnings will come later. The formerly high PE values could be justified by the high earnings now?

To: Jacob Snyder who wrote (42322)	4/17/2000 8:02:00 AM
From: johnd	Read Replies (1) \| Respond to of 74651

I am more into MSFT, CSCO, INTC this am. Others can wait for it to 0 to find the right buy point if you want.

To: Jacob Snyder who wrote (42322)	4/17/2000 10:05:00 AM
From: PMS Witch	Read Replies (1) \| Respond to of 74651

The difficulty I have with PEs and Microsoft is determining the 'E' part. Microsoft's propensity to 'manage' earnings makes their published 'E' almost useless. A penny here or there swept under the carpet makes a big difference when the practice continues over the years. Include their 'deferred' revenues, investment gains, option grants, and begin calculating your own earnings number. You'll be surprised at how easily you can arrive at earnings to suit your temperament or pre-conceived opinion(s)! Put this number into your equations and you'll find yourself able to justify almost any price, high or low. However, what you've done is a valuable exercise. You've looked at Microsoft and have independently assigned a value to its shares. You have a guide for your investing. Someone once said that when you buy a security, the price is what you pay and the value is what you get. Thank-you for sharing what you believe is the value of Microsoft and just as importantly, the method you used. Cheers, PW. P.S. If you do augment your Microsoft position with additional shares at $64, you'll be well rewarded when today's tide of fear ebbs.