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

To: ed who wrote (13434)	12/22/1998 2:29:00 AM
From: Charles Tutt	Read Replies (3) \| Respond to of 74651

With 2.7 billion +/- shares outstanding, you are projecting a market cap of $1.62 trillion +/- by Jan of 2001 (about two years from now). If we take the past year's sales to be about $16 billion in round numbers, and assume they increase at 30% a year (more than recent history, I think, and much more than projections of PC unit sales I've seen reported), then sales will be about $16 B * 1.3 ^ 2 or $27 billion at that point in time. So you are projecting a price/sales ratio of about 60 (more than double the current value, I think). Even if every penny goes to the bottom line, that will mean a P/E of 60, and thus a PEG of 2. Does that really seem reasonable to you? JMHO.

To: ed who wrote (13434)	12/22/1998 8:03:00 AM
From: t2	Read Replies (2) \| Respond to of 74651

Ed, People probably think we are insane to guess that this stock will go to very high levels. I used to think hitting 145 before earnings would have been a great move. Now, I think, 155 - 160 looks more realistice by earnings. This rally does not really have anything to do with MSFT. That one will probably start about 2 weeks before earnings. I can't believe the internet stocks -- this is what tells me MSFT is going much higher. This is one of the dominant companies in the internet phenomenom. There is incredible momentum in this market -- i have not seen anything like for the past 2 years. Santa Claus is here!!!!