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

To: Ibexx who wrote (8578)	6/23/1998 11:55:00 AM
From: johnd	Read Replies (1) \| Respond to of 74651

Ibexx: I am happy for you making money by selling puts yesterday. I also see my MSFT portfolio swell. Currently the market is reaching the other extreme, i.e. nothing can go wrong with Microsoft. The market has fully discounted that none of lawsuits against microsoft matter and that the company is invulnerable. The stock is now up a whopping 50% in the first 6 months of this year. In the mean time, i.e. during the last 6 months, the profits (EPS) have increased from 1.43 to 1.68 or a mere 17%. This is scary. I don't see the stock holding at 66PE for too long. There is very little margin of safty and upside potential. Very soon I am going to start selling covered calls or liquidate some. The tech stocks Q2 pre-warnings could start the downward movement. I see the potential for the stock to appreciate another 5 - 10% from heer in the next 6 months. But down side risk is equal to upside potential at this point. regards, johnd