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

To: Reginald Middleton who wrote (8620)	6/24/1998 1:07:00 PM
From: John F. Dowd	Respond to of 74651

Actually the more they defer the more they are able to tailor their future earnings and thus always provide a pleasant surprise. Predictability is a virtue that PE valuation folks love. Every institution loves to show they have MSFT in their portfolio and everyone feels comfortable owning it. As for the future lawsuits this guy must have been asleep for the last week. Why does he think the big boys are falling all over themselves to get back in. Keep up the good work Reg. John Dowd

To: Reginald Middleton who wrote (8620)	6/24/1998 2:08:00 PM
From: Hal Rubel	Read Replies (2) \| Respond to of 74651

Yet Another Non-Microsoft OS Able to Run On Clone Platform This time it is the Mac OS: "Microcode Solutions has released Fusion, a "Virtual Mac" for Pentium systems - using a Macintosh ROM image, it runs Mac software on a PC. A free demo is available, and introductory pricing is $79.95. A MacInTouch reader writes: "I booted it into OS8 and OS7.6.1 after getting a copy of my Quadra 610's ROM using an included utility. It has sound and color support, and ran with surprising speed on my Pentium II 266. I was able to boot off of CD (strangely enough, an IDE DVD-ROM drive), and off of a 100-MB file that the emulator pretended was a hard disk. The only thing really lacking is network support." " as reported today in MacInTouch. A Question: Should legislation be passed to permit Microsoft to be legally allowed to forbid IBM, Dell, Gateway, HP and other box makers from selling non-Microsoft OS solutions because of the threat to technical progress and to national OS uniformity? Or, in the interest of maintaining the pretense of operating in a "free market", should we just just not enforce any of the laws already on the books that the Microsoft situation may touch upon? If these two were my choices, I would prefer the later, because a "free market" economy could always be returned to without creating a legal precedent. I remain dubious about Microsoft's 60x PE. I will remain so until congress gives some legal standing to, or specific exemption for, Microsoft's tacit national OS monopoly. Hal PS: Gates' successfully "folding-in" of internet access for 95% of all desk top computer users into the Microsoft OSs, especially his successful defense of doing so as a "technical innovation" was a master stroke! My hat is off to him. I guess it is true that nobody ever went broke by over estimating the stupidity of the American people. As a "technical necessity", competitive browser functionality will need to be written out of the OSs to cement the plan, effectively "folding" the internet into the Microsoft OS. Incidently, this past week, there was an article in the Los Angeles Times about how banks found themselves working more closely with Microsoft in internet banking and how they were becoming increasingly alarmed and worried about Microsoft's intentions. Will internet banking eventually be "folded" into the OS? Internet banking is such a small portion of the total banking picture that I am sure no one will object to paying Bill his due. HR

To: Reginald Middleton who wrote (8620)	6/24/1998 7:56:00 PM
From: johnd	Read Replies (1) \| Respond to of 74651

Reginald: Take another valuation method: Price ro sales. Currenlty market cap is 255 Billion. Last 12 month sales including deferred revenues is $14Billion. That is whopping 18.5 Price to Sales, the highest in recent history. Wait till MSFT announces earnings end of July and I expect when they announce growth rates of 18% in revenues, the valuation will correct and the stock will correct to low 90s. At the same trailing business the stock had swing between 81.875 to 105. The only difference is market sentiment. Right now it is approaching "tulip" levels. I am not buying any more and sold covered calls. If they get called away, fine! johnd