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

To: David Howe who wrote (62015)	10/23/2001 1:20:48 PM
From: kvkkc1	Read Replies (4) \| Respond to of 74651

Given their growth potential, what do you think it will be? 10, 20, 30%? What growth rate justifies 14 price to sales ratio? I personally don't see it. Although I don't think MSFT as a company will collapse, I still see a lot of fat in the price.jmho.knc

To: David Howe who wrote (62015)	10/23/2001 1:55:32 PM
From: Dave	Read Replies (1) \| Respond to of 74651

You're misrepresenting the MSFT bear viewpoint. I, for one, don't say that the PC is dead at all, and certainly don't say that it is "TOTALLY DEAD," as you claim I claim. I agree that it has negligible growth prospects ahead, and cannot solely support MSFT's high valuation. Eventually, I think it's inevitable that the PC will be largely supplanted by some other technology. As far as MSFT's growth coming from other areas, I do think they will make inroads into some new markets. The primary point I've been trying to make is that most of that growth will come from illegal leveraging of its existing monopolies. And that will only happen if the antitrust prosecution fails to prevent this abuse from continuing. Furthermore, these new markets need to grow immensely, even impossibly, to support their valuation for more than a year or two. They need to be growing by 20% per year or more, and that's simply unsustainable for a company of MSFT's size. There is just not enough commerce on the planet to support that kind of growth indefinitely. Look at a chart of their revenue growth over the past few years. It's gone from 60% to 10% without blinking. But if you prefer to think I believe the PC is TOTALLY DEAD, do what you want. I can't stop you. Dave