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


To: Insitu who wrote (42857)4/21/2000 4:45:00 PM
From: johnd  Read Replies (2) | Respond to of 74651
 
It could drop below 60 Monday , why not?



To: Insitu who wrote (42857)4/21/2000 4:49:00 PM
From: techtonicbull  Read Replies (3) | Respond to of 74651
 
I believe it will break below $60 per share and then start to migrate downward towards $20. It won't happen all at once but there are a series of terrible things happening to MSFT IMO:

1) Challenge to their insurance by Zurich
2) Massive damage lawsuits
3) Judge Jackson's punishments May 24th
4) Hold back of major purchases by big clients
5) Big PR loss due to the conclusions of law findings against the company
6) DSL and Wireless overtaking cable as a viable broadband strategy.

If the above is not enough I believe the company will be severely crimped in earnings due to one more reason:

7) The growth of rentable software by way of ASP's, example is Star Portal from SUNW.



To: Insitu who wrote (42857)4/21/2000 4:58:00 PM
From: techtonicbull  Respond to of 74651
 
Insitu: I forgot one more reason for the severe drop in MSFT price IMO:

8) They will lose the JAVA lawsuit SUNW has against them IMHO



To: Insitu who wrote (42857)4/22/2000 8:44:00 AM
From: tonyt  Respond to of 74651
 
>Are you serious? It won't drop below 60 on Monday.

What about Tuesday, Wed, .....

There won't be a panic, but an orderly transition next week from institutions to 'bargain hunters' looking for yet another 'buying opportunity'

A 20% decline next week is not unreasonable based on Microsofts gudiance of flat growth and a reduction of 5c from earnings next qtr.

MSFT will come back, but not this year. MSFT is dead money.