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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator -- Ignore unavailable to you. Want to Upgrade?

To: Gerald R. Lampton who wrote (13921)	11/6/1997 5:37:00 PM
From: damniseedemons	Respond to of 24154

Jerry, what are you talking about??? For year-over-year September quarter numbers, MSFT grew faster than NSCP! Not only that, but NSCP's product revenue growth is slow--most of their recent growth has been in services (web site rev, etc.). That's fine and all, but NSCP is supposed to be a product company. Also, if you remember last year, people were forcasting NSCP to make $1Billion in revenues for 1997. Obviously, that's not happening. NSCP's stock price remains depressed because Wall Street obviously think that next year's numbers will come down as well. Hence, the true P/E will actually prove to be much higher than you think. I think it's also disheartening to NSCP that the September quarter was supposed to enjoy Suitespot3 and Communicator, both "huge" products, fully ramped. However, the revenue/earnings spike that many were expecting did not come. I know you don't want to admit it, but there needs to come a time when you face the facts: Microsoft is really hurting Netscape; badly. I don't want to get into the arguments of MSFT's unfair business practices and such...Regardless of the means, the end result is that NSCP is hurting. Sal PS. MSFT's P/E isn't actually as high as it seems, because MSFT's earnings are probably going to be ahead of expectations next year. So their true P/E is really lower. Anyway, officially published estimates for FY98 are $3.23, so MSFT's P/E is 40.8 (which really isn't so bad to begin with). For now, I'm forecasting MSFT to make $3.41, which translates to a P/E of 38.7 (also not bad). And then we have NT5.0, which will be "the biggest thing since sliced bread," for FY99. So overall, I will put a "Strong Buy" on MSFT! PPS. You brought it up, so that's why I spoke of P/E. But personally, I don't think simply looking at the P/E ratio of a stock is of any investment significance. PPPS. I also am a believer in the sub-$1000 PC phenomenon. It will tremendous for unit volume. And though the end hardware companies will struggle, the spike in unit volume is a boon for MSFT. Think about it: whether the PC sells for $900 or $3900, MSFT Windows ships on it. PPPPS. About Bill Gates' insider selling: You already know that Bill systematically sells 1 Million shares per quarter. He's been doing so for many years, like clockwork. With that, there is never any speculation or questions to answer.