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

To: larry who wrote (8734)	6/27/1998 10:38:00 PM
From: j g cordes	Respond to of 74651

Larry, MSFT is currently at its highest PE in three years looking forward to at minimum a 10% decline in '99 EPS even with your calculations. I'd suggest you buy Win98 now while they're literally giving it away in incentive packages including mice, speech reconition systems, anti virus and image programs... its worth the give aways alone! If it were worth more they could sell the box on its own merits. Hate to admit it but I might go for that Dragon speech system myself! <g> Last, lets in good nature continue this... I'll offer that MSFT over the next month sets its high price for the year. Jim

To: larry who wrote (8734)	6/27/1998 10:55:00 PM
From: ed	Read Replies (1) \| Respond to of 74651

If you look forward for five years, MSFT is not expensive at all with its current price. When you look at the stock, you are thinking about the position of the company's products in the market, its competitors, it consistency of growh, it is risk factors, ....etc. PE is not the only thing to be looked at. If you look at INTEL, the current PE is not high, and it is attractive, and the current market share of its product is great, 85%.However, if you look at its competitors, and the current market conditions of its price, the future for INTEL is not really that bright as it used to be. The competition from AMD, NSM you can never get rid of, the continuous price pressure on INTEL's product will be endless for the years to come. At the high end, CPQ's ALPHA will be a potential competitor for Mercede. So, what will INTEL be in five years even though its current PE is attractive ? While MSFT do not have all those problems which INTEL had , and the more PCs sold to the market , the more softwares MSFT will sell, and the price will always be the same no matter the software is sold for the application of high end PCs or sub $1000 PCs. The risk factor for this stock and this company is very low .