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

To: t2 who wrote (13117)	12/10/1998 6:53:00 PM
From: johnd	Read Replies (1) \| Respond to of 74651

I am still waiting for it to hit 140. That is my dump point. Reginald is right about Economic value added theory etc.. But the price on any day is based on trailing EPS times some PE ranging between 48 to 70 or forward 6 month PE times 42 - 60 or so. EVA factors into long term performance of the company however. I wrote December 140 covered calls and will do the same for Jan. once December expires. I would like it to be called away. MSFT could hit 200 in 1999. But sometime from now till June we could also see 105 - 110. I go by what price points where MSFT has done recent buybacks. In June Q, it was at average 85. In Sept Q it was at average 100. In Dec. Q, I think it is at average 105. In March Q, they wouldn't want to buy it above 110 - 115. So I expect that to be the next support level. johnd