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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: 4rthofjuly007 who wrote (53325)	4/18/2002 7:34:21 PM
From: t2	Respond to of 99280

RE:MSFT's valuation being high but that is true of other big brands like Coke,Intel etc... My point is that nothing in MSFT's earning report is any different than what we had known before. It is being valued like a monopoly. There was no BOMBSHELL! That is my point and believe the afterhours trading early on was an overeaction by traders thinking that there was big news. I believe the reason for the severe drop below 52 was the big reduction of revenue for June quarter from 7.7bill to 7.0/7.1. The company said it was all X-Box related....and that should not be a big deal. In addition, I believe they beat current quarter consensus by 6 to 10 cents (don't remember the exact number). This is from Rick Sherlund (goldman sachs) questions. If one looks at it that way, the earnings was a non-event. However, I do believe that people expected a bad report and that could explain why the big inflows in to the market did not push up stocks this week. My thinking is that they will buy on the news. I do think the "smart money" was not expecting good news and were planning to cover during the big drop tomorrow AM...imho, that does not look likely now. Remember how the market reacts when traders realize how much money just came into the market. I recall a few weeks ago that the market took off on a Friday in the midst of bad news when the money inflows data was released. jmho.