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

To: Brian Malloy who wrote (5666)	4/2/1998 6:43:00 PM
From: Crazyd	Read Replies (1) \| Respond to of 74651

How high will MSFT be by the beggining of summer?

To: Brian Malloy who wrote (5666)	4/2/1998 8:43:00 PM
From: johnd	Read Replies (1) \| Respond to of 74651

Despite the predictability and invinsibility that MSFT carries with it, the recent upsurge in the stock price from 65 at the begining of the year to 91 today represents nearly 45% increase per quarter (or 200%+ annualized, compounded). Such increases cannot be sustained for the company that is growing at 35 - 50% rate at the maximum. So the stock price will be a laggerd for the rest of the year. Possibly will go up to 110 in the next 9 months or about 20% from hear on. I don't like this kind of sudden surge. I would rather have the stock steadily appreciate 10% per quarter or about 50% year. Instead of Buffets Margin of error, in this case the margin of upside is stunted in the near term. I don't feel like throwing in fresh money at these valuation levels.