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

To: David W. Taylor who wrote (59700)	7/12/2001 12:59:16 AM
From: t2	Read Replies (1) \| Respond to of 74651

That loss was an investment loss but somehow it can be deducted from the Gross Profit and the resulting 1 cent profit is good news. A loss is a loss is a loss. They are beating revenue targets in a bad economic environment. Wonder what they can do in a good economy. There is every reason for the market to ignore that investment loss. OK..lets look at it another way. What happens if MSFT does not lose on its equity investments next quarter. First look at what the company will earn in just interest per share...I calculate 1.5billion on cash of 30billion at 5% --that is a minimum of 25 cents per year!!! --what happens if they recover some of the loss on investments or make gains on others....more earnings. On top of that they have regular operating earnings. That is why the market is ignoring this paper loss. For a company with almost 50billion in cash and investments, this is not a big deal. Also note that 50 billion translates into about $9 per share. Just imagine what happens if the tech stocks start recovering into year end and their stock porfolio starts gaining..just like a mutual fund. We could see a HUGE GAIN. As I type this, I am just realizing that these numbers are just mind boggling. There is really no doubt that Microsoft is the best technology stock (imho).

To: David W. Taylor who wrote (59700)	7/12/2001 1:25:15 AM
From: David Howe	Read Replies (2) \| Respond to of 74651

<< A loss is a loss is a loss. >> For the umpteenth time, the market knew about the investment loss. How many times was the multi billion $ loss in AT&T pointed out on this very board? The loss part of the press release is old news. The actual news is that the quarter was quite good. Much better than I would have thought. Their products are selling like hotcakes even though the economy is in the dumps. Like someone said, what kind of numbers can they turn in if the economy recovers and PC sales pick up again? There really could be a 20%+ growth year ahead of them. IMO, Dave