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

To: Ed Schultz who wrote (8556)	6/22/1998 10:49:00 AM
From: Ibexx	Respond to of 74651

Ed, RE. I'll go on record as stating that this company is dirt cheap even at these levels. I will echo that by saying it's still cheap enough for me to sell puts this morning, in addition to owning the commons and LEAPS calls of various strikes. Ibexx

To: Ed Schultz who wrote (8556)	6/22/1998 2:50:00 PM
From: johnd	Read Replies (1) \| Respond to of 74651

Ibexx: Every day when MSFT goes up, I rejoice. But I must keep the fair valuation in mind. Back in June/July in 97, one year ago, MSFT rocketed to 150 on a 60ish PE, but later gradually sank to 130 and leveled there (actually hit 118, for a day in late December). These are all pre-split prices. Consider the 1.77c expected for this Q, that would be a 33% increase in year over year earnings. If I draw a paralle, I would think MSFT would reach around ~99 (150 * 1.33, after split) and then could pull back and settle at 85 -89 (130 * 1.33 divide by 2) and could go as low as 78 (corrsponidng to 118). During calender 98, MSFT revenues booster is Windows 98 only and that is not expected to be much, so I don't see why people expect the parallel valuation scenario I mentioned above won't hold? johnd following in mind.