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

To: miraje who wrote (5227)	2/24/1998 3:11:00 PM
From: X-Ray Man	Read Replies (1) \| Respond to of 74651

Yeah, it's been nice to me lately, too. Puts purchased at recent 160 high did OK when dumped at 153 prior to split. Thought about buying calls then, but instead I am waiting out ride to the top (estimate 88) before picking up puts again. With regard to long term valuation, MSFT on average will be able to maintain P/E 50-60 so long as growth rate is maintained year over year. If, however, there was even a single quarterly drop in revenue, I think the stock would immediately correct, and P/E could settle around 35. So, there is a downside risk of some significance, even if MSFT continues to grow long term but not at recent rates. JMO.