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

To: nommedeguerre who wrote (10115)	8/14/1998 7:28:00 PM
From: cheryl williamson	Read Replies (4) \| Respond to of 74651

Norm, Intel going from $60-$86 is not a 100% gain. Yeah, especially when it came down from 102 first. Thanks, Norm, for your illuminating post. This won't be the first time Reg has been aced by a combination of solid data and common sense. Judging by his hard-headedness, it won't be the last either. Something tells me MSFT, as a company, has topped-out. It's possible that there are still some slow-learners out there in investment-land who will continue to buy because of its brand-name. But if I were long on MSFT, I would sell now while the gettin's good. They're going into some rough waters in the next 36-48 months. (no investment advice intended). cheers, cherylw

To: nommedeguerre who wrote (10115)	8/14/1998 9:56:00 PM
From: mauser96	Read Replies (1) \| Respond to of 74651

Market caps are important, especially in a market dominated by mutual funds and other institutions. Compared to most periods in the past,there's a smaller percentage of people investing their money directly. Institutional investors love large caps, because it's the only kind of stock they can buy without pushing the price up as they buy, and down as they sell. This is probably the main reason the big cap stocks have done so much better. In retrospect, I would have done a good bit better the last couple of years if I had sworn off small caps entirely. As long as this market is dominated by the MM,small caps as a group will underperfom most of the time. good investing

To: nommedeguerre who wrote (10115)	8/15/1998 8:03:00 AM
From: Reginald Middleton	Read Replies (1) \| Respond to of 74651

<In all your breathless prose, not a single shred of evidence as to why MSFT is not overvalued.> To begin with Norm, I am the one who challenged you to prove your allegations since the "math was so simple". I don't see how this turned into my trying to prove my points. Second, I have plenty of information available to back my assertions, yet I don't get paid to spread valuable knowledge throughout SI. You should read more. Try The Case Against Earnings rcmfinancial.com and a review of the most recent earnings release rcmfinancial.com to see how MSFT was inappropriately valued. After reading these pieces you should gather that MSFT's margins are really much higher than 34%, they have a wide open enterprise market, e-commerce market and consumer products market which is good for much more revenue (and margin) than they have ever made, and that you probably have several misconceptions about valuation in general.