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


To: ed who wrote (9661)7/26/1998 1:03:00 AM
From: J Krnjeu  Respond to of 74651
 
Mr. ed,

Right on, even the DOW is different from when it was first started. What was good in the past may not be valid now.

Thank you

JK



To: ed who wrote (9661)7/26/1998 3:17:00 AM
From: Moominoid  Read Replies (1) | Respond to of 74651
 
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......

So, your traditional way of calculation
about MSFT's PE won't play here. MSFT is in its infancy of its future explosive growth !!!


Valuation principles are the same in whatever kind of economy we're in (as long as it's a capitalist market economy). The question of interest is what will happen to earnings, cash flow etc. of MSFT. I see MSFT's earning etc growth slowing down and you see this as a temporary phase (or maybe book-cooking) which will be followed by a higher and maybe accelerating rate of growth.

David