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

To: J. P. who wrote (15057)	1/25/1999 12:29:00 AM
From: ed	Read Replies (1) \| Respond to of 74651

The story of CPQ is quite different than that of Microsoft. CPQ was trapped by its business model, ie. sell throught the middle man, and can't compete with DELL who sell its products by direct business model and through the internet. That is why CPQ tank, and announce a quarter of 2 cent earning, the effect of channel stuffing. CPQ's tank had nothing to do with the split. For Microsoft, it is just a catch up show. A lot of Hi Tech companies had their stocks doubled in the past 6 months, look at Intc, Sunw, Orcl, Nscp, ...etc. But none of these companies had such a huge future potential as MSFT. The 75% growth is really impressed, and the current stock price did not fully reflect that past achievement, and future potential of Microsoft yet. Actually, after the stock split, the price tend to appreciate faster for companies with hi growth, since the $1/16 bid/ask spread count higher % to the split price than the presplit price. The split can happen anytime at your surprise, and shorter got to be very careful this time not to be burned hard.