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

To: Big Kahuna who wrote (5220)	2/24/1998 1:24:00 PM
From: Joe Sabatini	Read Replies (1) \| Respond to of 74651

>>are athletes worth the money they are paid? That's not a good analogy. Sports teams are generally profitable after expenses (including players' salaries). And team owners generally do not pay athletes what they might be worth years down the road. If you buy 100 shares of Microsoft today, about 1/16 of that is actually worth something. What's really criminal is that so relatively little new money flowing into Microsoft shares can generate so much of an increase in market valuation. If it were up to me, there would be much more of a 1:1 correspondence between the amount of money actually flowing in and the amount by which the market cap of a stock increases. You'd of course have to leave some gap for the market makers. Joe S.

To: Big Kahuna who wrote (5220)	2/24/1998 1:24:00 PM
From: Ed Schultz	Respond to of 74651

My sentiments exactly. Given the fact that people have money and they want to put that money somewhere where it will grow, the populace has decided (for whatever reasons) that Microsoft is the place to be. That is what determines valuations. It's simple economics. By the way, who says that the Princess Beanie Baby is worth $1400, a going rate? It probably cost less than $1 to produce. I for one would not pay $20 for it (other than to sell it immediately for $1400). But some people are actually paying that amount. Personally, if you think it is overvalued, get out. Or short it. Briefing.com has been stating its been overvalued for 2 1/2 years now while the stock has managed to triple. A year from now when the stock hits 110 it will still be overvalued but I will be much richer for it! Isn't that what it is all about?