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

To: Ibexx who wrote (8241)	6/2/1998 8:07:00 PM
From: Bearded One	Read Replies (2) \| Respond to of 74651

$0.47 a share compared to $0.40? Gee, that's a earnings growth of 17.5%. Not bad for such a large company. $2.09 for next year compared to $1.76? 18.75% growth year to year is even better. So what's fair value for Microsoft shares? $1.7618.75 = $33 a share. Ok, lets say they beat estimates by 10 cents for the year. $2.19 is 24.5% growth. 1.7624.5 = $43.12 a share. Let's work backwards. 1.76 * X = $84 a share-> they need 48% growth. That means earnings of $2.60 a share. So they have to beat their prediction by 51 cents a share over the next year. Good Luck Enjoy your long positions.