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

To: Exacctnt who wrote (8462)	6/16/1998 3:45:00 PM
From: Ibexx	Read Replies (1) \| Respond to of 74651

Robert, Thanks for your interesting post. I never doubt Greenspan's intellect nor his integrity; he needs to brush up on newer schools of economic theories, however. (Also, he needs to remind himself FED's charter is not to manage the nation's economy; rather, its main goal is to control inflation--the two elements do not always have a quantitative relationship) Ibexx

To: Exacctnt who wrote (8462)	6/16/1998 4:22:00 PM
From: cheryl williamson	Read Replies (4) \| Respond to of 74651

Robert, Except for 1 thing: MSFT neither is a leader in any kind of technology nor do they benefit consumers. I didn't hear Mr. Greenspan mention MSFT or INTC by name (I didn't hear the whole presentation). What was the context?

To: Exacctnt who wrote (8462)	6/16/1998 5:05:00 PM
From: Bearded One	Respond to of 74651

Interesting. Your version of what Greenspan says does not conflict with the DOJ or FTC, however. They are not charging MSFT or INTC with being monopolies. They are charging them with using their monopoly power to illegally preserve their monopoly. The implication is that, if Microsoft and Intel follow the law, their monopolies would be in danger unless they continue to benefit consumers.

To: Exacctnt who wrote (8462)	6/16/1998 5:36:00 PM
From: Hal Rubel	Read Replies (3) \| Respond to of 74651

Legalizing Microsoft's Monopoly -A Brave New World! RE: Greenspan's Comments Favoring not Enforcing the Anti-Trust Laws in the Case of Microsoft's Monopoly The very possibility of not enforcing the laws thereby in effect legalizing and enforcing Microsoft's Monopoly in desk top computers and clearing the path for monopolization of access to the internet greatly enhances the value of Microsoft shares in my mind. In effect, Microsoft becomes not just an internet company, but THE internet company with all the potential of Bell Telephone in its hey day. However, there is the ever present shadow that the regulators cast upon Microsoft's benevolent attempts to bring us into a new and better world through its succession of "technical innovations". If the congress and the courts could formalize a specific exemption from the anti-trust laws governing commercial business practices for Microsoft, the regulators would no longer have a leg to stand on. If this were to become so, then a PE of 60x would be far too low for Microsoft. I do not think any PE would be too high. I would expect investors around the world would gut their interests in all other firms on the planet to pile into Microsoft. With all that capital flowing in, there would be nothing that Microsoft might not be in a position to attempt! (Especially so, if Microsoft were allowed to carry forward its exemption to anti-trust considerations into all its new fields of commercial endeavor. As long as it is folded into the Windows OS some how, no mater how thinly, it would be magically exempt.) What a brave new world! I would not care where Bill Gates' Microsoft ends and I begin, because I would be a Microsoft share holder. The only thing left to regulate would be who gets Microsoft shares. Hal PS: Redicito Absurdum: For this to actually work, foreign governments would have to go along with it too. But not to worry, we could always threaten to cut foreigners off from the blessings of Microsoft licensing and product availability for however long it takes for them to see the divine wisdom of the Microsoft way. Maybe we would need to allocate to foreigners some Microsoft shares, but only to the right thinking people, of course. And, if there is no real limit to Microsoft's PE then it naturally follows that there should be no natural limit to the number of Microsoft shares, thus there should be plenty of shares to go around the world. It would be almost like printing paper money, but without those quaint pictures of dead presidents on them. A new international standard would emerge. Billy Bucks! Now, as an international standard, Microsoft shares may occasionally need to be propped up a bit along the lines of monetary intervention. Along with responsible monetary intervention comes the usual litany of mandated austerity programs and direct regulatory intervention so popularly espoused by our very own Allen Greenspan. (QED) At this point we may have gone full circle and I may have flown Microsoft a bit high. I feel a little dizzy. So, by by. HR