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

To: t2 who wrote (14995)	1/23/1999 6:06:00 PM
From: Catcher	Respond to of 74651

t2, good article on page 26 of 2-1-99 fortune mag. article pessimistic in general re ability of most stocks to sustain growth needed to support current pe levels. "Only stocks like msft, dell and intc could grow more slowly in the past and make the 20% annual hurdle". Says based on 12-31-98 msft $138.69 / pe: 58.5, co would have to grow earnings 25.2% to hit $345 stock price. good news is it has grown at 39.1% for last 5 yrs. other stocks (eg t, mrk) don't come close. of course, article assumes pe matters...departure from earlier posts on this thread. also, this thread's consensus seems to be a price well over $1000 (split adjusted) in 5 yrs. POINT is, msft seems better suited than anything else (within similar risk parameters) to grow stock price