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: Milan Shah who wrote (53686)	11/30/2000 7:10:42 PM
From: sandeep	Respond to of 74651

I agree. Reacting to every market move (especially when we might be in a bear market with the possibility of future or current slowdown in the business) is futile and stupid. Hopefully, they are patiently buying back stock SLOWLY. There is no hurry. No good news is on the horizon, why waste money ?

To: Milan Shah who wrote (53686)	11/30/2000 7:23:49 PM
From: Dave	Read Replies (2) \| Respond to of 74651

In the case of MSFT, there's $56B of short and long term investments, and a market cap of $306B - or about $10 of liquid cash for every $57 share. Discounting that, you end up with a PE of about 30 on a trailing basis. If low PE-after-cash for a growing tech company is what you are after, buy AAPL. They have about $12/share in cash and investments, and their price is $16.50/share. Discounting that, you end up with a PE of a little over 2x on a trailing basis. What's more, AAPL isn't threatened by worldwide antitrust measures, and their operating earnings increased by over 40% last quarter rather than decreasing like MSFT's did. When this Tech Depression wallows in its coming depths, 30x earnings will sound absurdly expensive! Dave