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

To: t2 who wrote (15323)	1/31/1999 1:48:00 PM
From: X-Ray Man	Respond to of 74651

Funny thing. Adding MSFT to indices could actually cause some institutional investors to cut their direct investment in MSFT, if they also hold index-matching securities. Why? Because most institutional investors are already invested to their maximum comfort level with MSFT. I don't think adding MSFT to index will hurt the stock, but other than a short-term psychological bumpup, I don't think it will push demand significantly either. JMO.

To: t2 who wrote (15323)	1/31/1999 2:59:00 PM
From: J Krnjeu	Respond to of 74651

<<<Why not try to pick the next internet stock that could be added to the S & P? Get in before the index funds are required to buy into it. I think Greenspan's comments would have help this along. >>> The only problem with that is what company will that be and when will the S&P add another internet company? Yahoo is prime but how likely will it hold it's lofty price? Another point is AOL is the only internet company that reports a profit that I know of. I don't think the S&P will put in a company that has not reported a profit. That is a major downside for YAHOO. What dictates when when S&P must include an internet company? I think its better to just own MSFT. I was interviewed last year for a position at MSFT. I talked to several people including a VP of the central USA region. He said MSFT plan on splitting 3 times in the next five years. So that means their are 2 more splits left in the next 4 years if he is correct. Thank You JK