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

To: Mike McFarland who wrote (5048)	2/7/1998 1:13:00 PM
From: Reginald Middleton	Read Replies (1) \| Respond to of 74651

<When the market capitalization of Microsoft stock surpasses General Electric I will have to come back to this thread and say how wrong I was, how I should have finally "invested" too.> You don't measure companies by market capitalization. It is utterly useless. General Electric issues debt, are you including GE debt in your market cap comparison? What does the comparison mean? What you should be comparing is sales, sales growth, economic profit, rate/return of investment and the cost of capital (risk). I created a list of common questions concerning Microsoft's valuation and performance. The questions are linked to analyses in PDF format. I invite you to come by and visit - rcmfinancial.com <For now, I am again "putting". Heck, I'd rather put AOL but the premium on the MSFT puts is a lot less. I guess everybody assumes that Microsoft is invincible, maybe it is. But at least in the short term the stock is overbought.> I would not "put" Microsoft if I were you. There are a lot of weaker companies to gamble with than Microsoft. Why do you think the premium of the MSFT puts are so low? Think about it.

To: Mike McFarland who wrote (5048)	2/13/1998 1:30:00 AM
From: Randomm	Read Replies (1) \| Respond to of 74651

I thought MSFT was overbought last year and look at it now....Never forget who runs the company. Bill has enough money to keep it strong and he does a damn good job. There are still many opportunities and challenges to be met.

To: Mike McFarland who wrote (5048)	2/16/1998 8:05:00 PM
From: yard_man	Read Replies (2) \| Respond to of 74651

Personally, Mike. The lack of bearish sentiment is good when buying puts. If the price holds tomorrow I may join you. This is no judgement against the Company of course. They have done quite well (-- I think they have terrible problems in quality control, but when you have the market ...) The price of the stock, however has gotten beyond itself. Regardless of what anybody has said, it is not a bad thing to put the stock of a "good company." Their options are very liquid. This is surely the time to make an informed bet here, IMO. I wish you well. Will let you know if I join you. (Don't tell anybody but I've made some money putting the other part of the duo a while back.)