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


To: johnd who wrote (14924)1/21/1999 9:00:00 PM
From: t2  Respond to of 74651
 
MSFT's 12 month trailing EPS is now at 2.29
So what PE range will it trade this Q?
2.29 * 50 => 114.5
2.29 * 55 => 126
2.29 * 60 => 137.5
2.29 * 65 => 148.5
2.29 * 70 => 161
2.29 * 73 => 167


John, This looks better than I thought. You gotta remember that
that from Sept quarter to December quarter they went from 56 to
73 cents. December to December they are up 74%. The PC explosion
along with Office2000, Windows2000, and continuation of SQL 7.0,
internet business (MSN). I think it deserves a higher PE than
shown on your list. The year over year gains in the last two
quarters were incredible.

C'mon---Do you really believe Windows2000 is not going to be
a huge deal. Just remember that "analysts" thought Window98
upgrades were not going to be that significant.(I still remember
some of these guys saying this CNBC--I remember the faces)
They were wrong as usual. What about Office 2000?
Both of these new releases are going to generate
phenomenal revenue-----even with Y2K.

LOL.



To: johnd who wrote (14924)1/21/1999 9:38:00 PM
From: J. P.  Read Replies (1) | Respond to of 74651
 
<MSFT's 12 month trailing EPS is now at 2.29
So what PE range will it trade this Q?

2.29 * 50 => 114.5
2.29 * 55 => 126
2.29 * 60 => 137.5
2.29 * 65 => 148.5
2.29 * 70 => 161
2.29 * 73 => 167>>>>>>

I believe this logic to be flawed. Microsoft is growing their top line so fast, with such huge net margins, that you cannot use trailing EPS as an indicator of future PE. Plus don't forget the rollout of Windows 2000 which will be a cash cow. This stock is a winner.