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

To: johnd who wrote (13472)	12/23/1998 1:49:00 PM
From: DownSouth	Respond to of 74651

jd, I recall a lot of optimism back in September. What did happen is a herd of thread terrorists (aka MSFT haters) decended upon us to tell us they told us so and the sky is falling. Their noise level very high, lead by such as ToySoldier, the MSFT hater from the North.

To: johnd who wrote (13472)	12/23/1998 2:59:00 PM
From: t2	Read Replies (1) \| Respond to of 74651

John, What happened in October is the reason why there is euphoria on this thread. People realize that they made mistakes by unloading stocks that month. I admit that I loaded up on Intel, MSFT and DELL options (Jan/Feb/Leaps). It turned out to be a great month!!!! If the Oracles are reporting good earnings (they had poor earnings earlier in the year or last year and estimates were brought down or it was a preannouncement-- i don't remember the date )and projecting a good future, you can bet the MSFT will blow away the numbers in the earnings release (unless the unearned revenue account increases by a rather large amount). MSFT had never preannounced poor earnings (at least in the last 2 years )and usually beat numbers quite easily. Remember back then the dollar was pretty high against the yen and you had a lot of worry about the tech stocks until the dollar dropped. I must tell that in my opinion I don't believe MSFT was too worried about currency exchange -- it just meant there would be a steady climb in price every year, attracting good employees(with stock options). Just listen to their conference calls (July or Oct -- I don't remember which but i believe it was July) and notice the reference to employee stock options( in relation to the stock price). This is what I recall. You would notice what is being said between the lines. In addition, the unearned revenue account has mushroomed in the last year --- why? Proper accounting? I don't think that is the whole story-- just a method the main purpose of which is to control EPS---even if it is according to GAAP. They are much more conservative than their competitors in presentation of their financial statements. just my opinion.