Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Dave who wrote (49889)	9/25/2000 6:42:28 PM
From: johnd	Read Replies (1) \| Respond to of 74651

How do you explain 100 PE for ORCL that is growing at 14.5%? ============ Maybe you're missing this: MSFT's P/E is 37. Even if their growth rate is 17.5% this year, they're still arguably 2x overvalued. If you account for uncertainty regarding their future relevance and uncertainty regarding their future corporate structure, it looks even worse. Another thing to consider is that when MSFT's profits DO increase, they don't reinvest a big percentage in R&D (it's a big absolute amount, but a small percentage). Rather, they place their profits in strategic investments, often in companies whom they wish to persuade to use WinCE. Obviously the strategy behind these investments has been failing so you can argue that MSFT is throwing its profit growth away. The best thing MSFT could do now would be to offer dividends. Then at least some of the poor suckers who have been throwing good money after bad into MSFT could get a little bit back.