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: t2 who wrote (60381)	8/6/2001 10:19:10 PM
From: Timetobuy	Respond to of 74651

They need the economy to turn around? Housing and retail sales are cracking. Corporations are cutting spending and there are pc's laying around from laid off workers. siliconvalley.com The pe doesn't tell the whole story. No, it doesn't. The peg does. And msft's size will make it hard for them to grow more than they already are. The dot.com bubble bursting makes it more likely that there are excess pc's in the system and more likely that there are less companies that are buying. The telecom bust is much worse than the dot.com burst and there have been more lay offs in that area than the dot.coms. There are plenty of companies with much more cash than msft that are growing faster and they are trading for lower pe's, lower pegs and have more cash. Msft may or may not go down, but it will underperform for years if it stays up here. It's a long term HOLD because that's what will happen to it, just like Coke and walmart did for four years until the valuation caught up with it. Nice company, good trade if it goes down, not a stock I would buy hoping it has growth faster than the market.

To: t2 who wrote (60381)	8/7/2001 1:22:34 AM
From: Dave	Read Replies (3) \| Respond to of 74651

MSFT does have a very high cash level and equity investments. Yes, they have a lot of assets if you consider the whole company. But of course you probably can't afford to purchase the whole $356 billion company. And if you add up MSFT's assets and subtract the liabilities, for each of the 5.38 billion outstanding MSFT shares they have $9 per $66 share. Consider it unpaid dividends. Do you really think that $9 in "unpaid dividends" per $66 share is supposed to make the stock look attractive despite its proven capacity to gamble away that money wantonly in the stock market, its stagnant to dwindling operational earnings, the mounting threats to its monopolies, its consistent record of failure markets outside those monopolies, and its questionable accounting? No thanks. Dave