To: Tony Viola who wrote (114752 ) 10/23/2000 10:31:15 AM From: Proud_Infidel Read Replies (3) | Respond to of 186894 This could possibly add to another *FUN* week in the tech sector:biz.yahoo.com Microsoft CEO sees some techs overvalued MILAN, Oct 23 (Reuters) - Software giant Microsoft Corp's (NasdaqNM:MSFT - news) chief executive officer Steve Ballmer said on Monday that some hi-tech stocks are still overvalued, and a further market correction could be expected. ``I think the stock market, with some exceptions, is now very rational. I do think there are some companies that are dramatically overvalued, and that we can expect to see more correction,'' he said speaking at a presentation of Microsoft's strategies in Milan. Ballmer, commenting on recent market volatility, said that investors were too easily influenced by whims or jitters. ``In economics they teach in the long run the stock market is always right. I respect that. But in the short term people are just following fashion: it's fashionable to be excited about one sector, and everybody goes to that sector, then it is not and everybody gets out.'' Ballmer also said he would welcome a greenlight from U.S. regulators to the America Online (NYSE:AOL - news) proposed merger with Time Warner (NYSE:TWX - news), because it would transform AOL into fully national media company not competing with Microsoft. ``AOL would be a much tougher competitor without Time Warner. With Time Warner, AOL is a U.S. media company. U.S media companies are not the thing the threaten our business -- a global supplier of core Internet services,'' Ballmer said. ``So, I hope they get it.'' U.S. authorities are still examining the combination of the world's largest Internet services provider with the media giant, which has already received the approval of the European regulators. Looking ahead, Microsoft's CEO set three targets for the company's strategy: ``Number one, really executing well on (new Internet strategy) .NET; then really to make sure we get the kind of broad update of Windows 2000 that we expect; and finally, we have got to be as good and successful as we expect with the Court of Appeals.'' In June, a trial court judge ordered that Microsoft be broken into two pieces for violating the U.S. antitrust laws. Last month the Supreme Court refused to hear the case directly and sent it down to the U.S. Court of Appeals.