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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: KevinMark who wrote (117846)	12/1/2000 2:14:39 PM
From: Dave Gore	Read Replies (2) \| Respond to of 120523

WOW! That would be a Market rocker in the PC sector area. They usually are so conservative in their guidance. Can't remember the last time they missed. You sure a big name might be leaving or something like that?

To: KevinMark who wrote (117846)	12/1/2000 4:34:51 PM
From: Lane Hall-Witt	Read Replies (1) \| Respond to of 120523

KM -- MSFT: I've been mulling over MSFT's prospects, also. I was amazed at how positively the Street took its numbers last quarter, when earnings were basically flat except for the big surge in investment gains. What will happen this quarter, with the obvious sluggishness in the PC sector? I don't think it'll be pretty, but I suspect MSFT will probably make its earnings anyway. Not only do they guide the Street cautiously, but they also have very conservative accounting practices. The benefit of this is that the can take advantage of the reserves they've recorded -- MSFT's "rainy-day" fund -- in order to prop up the bottom line. (MSFT has actually been investigated by the SEC for having overly conservative accounting practices, I think. Now how often do you see that?!? The SEC's rationale was that MSFT could manipulate its reserve levels in order to smooth out fluctuations in business performance, thus giving a poor representation of the actual performance of the business -- which is exactly what I'm arguing MSFT would do if it needs to dig to make the quarter.) A MSFT shortfall would hit the techs like a nuclear bomb. The Street floats rumors that MSFT is going to miss almost every quarter, but I don't think anyone actually expects a shortfall from them. Then again, you're right about the action on the tape--. <G>