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

To: Moominoid who wrote (9644)	7/25/1998 9:58:00 AM
From: Reginald Middleton	Respond to of 74651

You are mixing and matching valuation methods, which will only result in erroneous conclusions. The economic value added is not necessarily synonomous to earnings growth, which is what I think you are assuming. In addtition, MSFT does not have to grow earnings to add market value, which is also what I think you are alledging. The growth rate of economic value added can decrease yet the company creating it can still increase in market value - just not necessarily at the same rate. Remember, market value is the compilation of expectations and growth rate can be considered analogous to the velocity of value, not necessarily the distance. I hope I have answered your questions.

To: Moominoid who wrote (9644)	7/25/1998 2:11:00 PM
From: ed	Read Replies (2) \| Respond to of 74651

David, I respect your calculation, however , you got to understand that we are now in a period of technical revolution, which is "Information Technology", that will change the life style of everyone in this world, and the key to enjoy that benefit is that you have to have at least one PC. Think about that we can now discuss the stock of MSFT on this thread with people from allover the world, and which was almost impossible even 7 years ago. We are now in a different kind of economy, i.e "digital Economy", it will be wrong to do your calculation based on the traditional way. Now let's talk about Microsoft, microsoft is in a business of software, and its business will drive the progress of Digital Economy, and the revolution of information technology. Think about that , if MSFT do not support the 1394 in its software, the fibre channel optical technology will not fly, if MSFT will not support the 64bit software, the INTEL Mercede will not fly... etc, so, MSFT is in the forefront and driving position of this Technical revolution. All sign had indicated that MSFT is now paving the way for the future E-Commerce business, look at its banking and real estate board on the internet ...etc. So, your traditional way of calculation about MSFT's PE won't play here. MSFT is in its infancy of its future explosive growth !!!