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: David Howe who wrote (51335)	10/16/2000 9:00:09 PM
From: johnd	Respond to of 74651

Gap up open on Thursday. Don't know by how much. I sure hope for 10 - 15.

To: David Howe who wrote (51335)	10/16/2000 9:03:42 PM
From: David Howe	Read Replies (1) \| Respond to of 74651

On a different subject, if you want to create a valuation model for MSFT you should break their multiple business segments into pieces. Go ahead, give a low PE ratio like 15 or 20 to the portions of MSFT's business that aren't growing rapidly at this time. Give a PE ratio similar to SUNW's PE to the portions of MSFT business that have moderately strong growth. And, give a PE similar to SEBL or YHOO to the portions of MSFT's business that are experiencing very rapid growth (ie. MSN). I've been through this exercise and consistently come up with valuations for MSFT in the $80 - $90 range. Throw in a few areas that are negligible in terms of today's earnings but could be significant in terms of tomorrow's earnings (xbox, pocket PC, automobile CE, wireless, etc. etc.) and you will conclude that MSFT is significantly undervalued compared to its peers. IMO, Dave