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

To: Yaacov who wrote (5393)	3/7/1998 9:37:00 AM
From: Gary105	Read Replies (3) \| Respond to of 74651

Yaacov and all, my take on the recent announcements: 1. Re. msft, I will buy on dips unless convinced otherwise. Right now I see the following: a. Revenues of some computer makers slowing but not necessarily unit sales as price per computer drops. While CPQs revenues taper off, DELLs continue to look good. b. Big aftermarket for MSFT, many I know are upgrading to new Office version so that they can read files sent to them by those whom already have it. So MSFT gets to sell their software with almost every new computer as well as upgrade old ones. I need to hear more about unit growth of new computers but unless I'm convinced of a drastic fall off in unit growth I will stick with msft. I also thought the stock split was a positive sign. The only dilemma I face is the earnings estimates for upcoming year show slower growth, although msft earnings estimates have history of improving as year progresses. 2. Re. CPQ - I was amazed at their growth despite their quality problems. Ask anyone who owns an Armada - at the office I had an NEC for 4 years without a problem, since purchasing Armada 1 year ago, the hard drive needed to be replaced twice - and I've yet to take it on the road. Others I know also have problems with Armada and also desktop. They previously differentiated themself with top of the line quality at a reasonable price. They are rapidly losing their quality image among their users. Once lost these customers will never return. So I remain bullish on msft on dips. But I also should say most of my money is not in tech sector - it is in BRKB and a toy company. Regards to all, Gary