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

To: Ibexx who wrote (8712)	6/27/1998 2:15:00 AM
From: larry	Respond to of 74651

You are absolutely correct. This dude bought MSFT 100 put at 3 1/2 and had his ass covered at 3 3/4. I am not sure whether he bought more puts or shorted the issue later. Well, technically the MSFT shorters are driven to corner. Their last defensive resistance was at 104, which was broken by MM and bulls this afternoon. I expect a strong tech rally in the next two weeks to push the issue to about 115. The shorters might still be okay, but the put buyers will have to find them getting screwed badly. larry!

To: Ibexx who wrote (8712)	6/27/1998 9:33:00 AM
From: j g cordes	Read Replies (2) \| Respond to of 74651

Is MSFT overvalued? Ibexx and especially larry (your misinformation) .. yes I did buy puts on MSFT exchange2000.com and sold them for a 1/4 point... as with AOLSA's which got a better return exchange2000.com and many others. I'm out of MSFT right now and doing fine. The issues I have with investing in MSFT have more to do with valuation, forward growth, product, timing, its business practices and the bull elephant herding instinct it attracts. There are always those who follow the biggest and fattest companies or individuals in history and they always get quite upset when their hero is challenged in the smallest way. (not saying you worship MSFT Ibexx and larry, you're far more broad minded than that). Microsoft in particular is a beneficiary of having been oversold on Justice Dept worries, Win98 release worries, PC sales worries and forward growth/to price of stock worries. When it was at 85 I bought calls and did well on the upside and told friends NOT to dump their shares.. the same with INTC when it was near its lows. But MSFT's problems are still there.. they haven't changed and now its at the higher end of its trading range gathering downside risk like flies to an old horse. Consider MSFT's $ 257 Billion market cap and current PE of 65 ! The Combined Market Cap of these companies is approx equal to MSFT ! JP Morgan.......... 21 billion American Airlines.. 15 billion AT&T............... 92 billion IBM................ 106 billion SUNW............... 16.5 billion YHOO............... 6.8 billion -------------------------------- MSFT............... 257 billion At this price and MSFT's growth rate being about 33% this year and expected to be down to 20% next year biz.yahoo.com, I'd feel very comfortable shorting or selling calls at wherever the June/July highs peak. Jim