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

To: jim shiau who wrote (12758)	11/29/1998 1:27:00 PM
From: ToySoldier	Respond to of 74651

Jim, No one was arguing at all about what industry NOVL is in. In fact, we were not even talking about what sub-sector NOVL is in. They are in the software industry - just like MSFT. Quit trying to throw in unrelated jabs. You likely dont even know what myself Gerald and Tech2000 were talking about. We were talking about Tech2000's statements which said MSFT would take ORCL and IBM down in the future. The profit margins have little to do with the point I was making. IBM's massive revenue advantage over MSFT is an indicator that IBM's revenue is coming from a multitude of sub-sectors. With this in mind, even if IBM were to encounter a dramatic drop in one of their sub-sectors, it would not do much to their profit margin because of the support of their many other sub-sectors. So possibly their 7% profit may drop to 6%. The huge bulk of MSFT's revenue comes from software. So if some future event(s) do something that would effect that sub-sector (ohhh lets just say the DOJ trial, the Java emergence, the Y2K issue, the move toward NDS, etc.) then MSFT 35% profit margin would swing violently. So their 35% may drop to 15% or worse. "House of Cards" revenue and profit. (and before you open your mouth - NOVL is in the same boat as is MSFT in that they are focused on the software sub-sector. In fact, effects on NOVL's sub-sector would hurt NOVL even more.) Toy