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

To: Richard Dustin Doyle who wrote (3768)	10/23/1997 4:45:00 PM
From: Richard Dustin Doyle	Read Replies (1) \| Respond to of 74651

Let's take a look at the overall performance of some of the high tech "Blue Chips," Intel 81 7/8 dn 2 1/16 or -2.46% IBM 100 3/8 dn 4 3/4 or -4.52% Compaq 71 3/4 dn 2 1/16 or -2.79% Gateway 31 1/4 dn 1 5/8 or -4.94% Dell 95 13/16 dn 3 5/16 or -3.34% Sun Micro 36 3/4 dn 1 1/4 or -3.29% Microsoft 135 5/8 dn 1/16 or -0.05% Something is not right here!! MSFT comes out with good earnings and says that second quarter will probably be good and then the next two quarters will be flat!! What does the stock do, up, up, and away! This stock is getting way to speculative and the main reason I am SHORT-TERM bearish on this stock is that people bought the stock because they believe the DOJ is wrong??!!?? Since when do investors know all the legalities of this charge. I would rather see the stock get hit now and then go up if the charges are nullified!! Not the reverse where we the investor know that the BIG BULLY is the DOJ. Investors are getting to personal and are bidding up the stock on pure opinion and not fact. Don't get me wrong, I am a long term bull of this stock, but it will get slammed a whole lot more if it is bidded up now and then we find out that they have to pay 800 million for the infringment. This stock P/E ratio is the scariest part of the fundamentals of this company. A company trading at 52 times earnings and growing at 36% is not justified! We need a correction and I thought we might get a pullback today, but MSFT Bucked the trend again! Something is really wierd with this stock and I am trying to figure out why it is justified to see this stock climb higher when all the numbers are saying it needs to go down?!? Please don't respond saying that MSFT is a great company, I already know that, does anyone know why we can still be trading at 41 times 1998 earnings "EXPECTATIONS" when they are only growing 36% this past quarter and the quarter before grew at 42%?!?

To: Richard Dustin Doyle who wrote (3768)	10/23/1997 5:44:00 PM
From: Brian Malloy	Read Replies (1) \| Respond to of 74651

Unfortunately, You just don't get it. Regards, Brian

To: Richard Dustin Doyle who wrote (3768)	10/24/1997 12:34:00 AM
From: daniel dsouza	Read Replies (1) \| Respond to of 74651

Dustin, I am talking of year to year, not sequential quarter to quarter. Compare recent quarter with year ago quarter ending sept '96. EPS grew from $0.47 to $0.72. That's 53%, and no stopping!!!!!! MSFT will drop to 120's because of DOJ, not because the stock is overvalued, meaning return on investment does not justify the price. That's why I bought Dec 120 puts, otherwise I would have sold all my MSFT holdings. If DOJ breaks MSFT, NASDAQ will crash. I personally believe entrepreneurs will suffer.