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

To: Gerald Walls who wrote (8506)	6/17/1998 2:18:00 PM
From: Bearded One	Read Replies (1) \| Respond to of 74651

For the same reason GE sells at over 30x with an EPS growth rate of 13-15%: reliability of earnings and liquidity. Bonds have a much more reliable earnings growth rate (assuming you plow back returns into the bonds). Why aren't they trading at twice or three times their current price?

To: Gerald Walls who wrote (8506)	6/17/1998 4:07:00 PM
From: Ibexx	Read Replies (2) \| Respond to of 74651

Gerald and thread, Folks who use P/Es (trailing ones, especially) as sole criteria for their investments should STAY AWAY from MSFT or any other such stocks. I absolutely agree. Ibexx

To: Gerald Walls who wrote (8506)	6/17/1998 7:20:00 PM
From: Reginald Middleton	Read Replies (1) \| Respond to of 74651

For those of you who are interested in how the market values the US software industry as a whole as compared to MSFT, see rcmfinancial.com . The analysis for MSFT (which I posted before) is on the right hand side of the page, while the software industry can be accessed via the market value link at the top of the page. Needless to say, the market pays much more attention to MSFT's gross cash flow than that of the industry as a whole. The market also tends to track the software industry's book value much more than most would believe.