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

To: TTOSBT who wrote (53671)	11/30/2000 4:15:05 PM
From: johnd	Respond to of 74651

TTOBST, MSFT CFO said Windows2000 network effect is being seen as people have started to upgrade.

To: TTOSBT who wrote (53671)	11/30/2000 4:15:31 PM
From: sandeep	Read Replies (2) \| Respond to of 74651

Actually the last time the revenue expectations was met too. This time, I am fearing a revenue shortfall warning. The stock is definitely trading like Al Gore is going to win AND it is going to miss. Just IMHO.

To: TTOSBT who wrote (53671)	11/30/2000 4:44:09 PM
From: Dave	Read Replies (1) \| Respond to of 74651

I was wondering if they can make the number as last two q's were made due to investment earnings. I know what you mean. But they will have no trouble meeting the number. Microsoft has incredible flexibility in their accounting. Even if they suddenly stopped selling products today, their accountants could continue to manufacture profits for at least a decade. They can declare that their software intellectual property has value (just as IBM does, to the tune of about a billion dollars, I've heard), and begin to depreciate it. That alone could give them positive earnings for years. They can require that their vendors place future orders, and declare them as current income. They can do all kinds of tricky things. As usual, the important thing is exactly how low they will have to stoop in order to meet the numbers. The last couple of quarters required investment earnings. They may not be able to use that this quarter, so watch for other accounting shenanigans. Equally important to short-term traders will be how the market reacts to the quality of MSFT's earnings. The market has been extremely generous lately in choosing to believe MSFT's spin. I don't think that will be the case this time. Dave