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

To: Catcher who wrote (14551)	1/19/1999 12:48:00 AM
From: t2	Read Replies (1) \| Respond to of 74651

I don't think there is any doubt that MSFT will blow out the quarter (alternatively -- do very good and have a large addition to unearned revenue account). I think the uncertainty about the DOJ might do harm to the stock price over the short term. Once the case is over with, watch for it to move up rapidly. Too many people remember how poorly IBM did when the DOJ was after them. It is silly to assume that this will happen to MSFT. However, there are always some investors that are swayed by such news causing selling pressure. MSFT's own negative forward looking statements used to cause downward pressure right after earnings but this time I don't think anyone will listen to their "story". The strange this is that last year the stock went no where in January just after earnings----it did not even have a decent run up. The cautionary statement did it. Once the split was announced a couple of weeks later, it took off. The split did nothing to the profitability of the company. I feel it was the fact that a lot of MSFT bulls who did not hold on to the stock after earnings were just waiting for others to dump it so it could be picked up at low prices. Negative DOJ news was going to cause these drops to some degree. I think there is no company like MSFT. I am very bullish long term on this stock--much more than any stock I have ever held. I also feel it is the "cheapest stock"! However, I did not have it in my portfolio for many months last year------just because I thought I would get more buying opportunities. If lots of investors felt the same way, there is the selling pressure. As posted earlier about 70 percent of the shares are in mutual funds or held by insiders, causing a reduction in circulation. This time I think we might get an internet-like affect (up) after earnings instead of a downturn that normally takes place after MSFT announces. JMHO