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

To: johnd who wrote (15569)	2/5/1999 5:12:00 PM
From: Lee Martin	Respond to of 74651

That's why I'm in MSFT and AOL only right now. I think these are the two best bellwhether techs right now. They both split, both are knocking the cover off the ball in revenues and earnings, analysts are increasing est., they are both immune to any processor,DRAM,disk drive, or PC hardware price wars and they are cheap compared to their peers. I know AOL's PE is high but if you compare it to the other .coms it turns out to be the safest and cheapest direct net play. The smart $$$ knows this and you can bet in a few months you'll hear them saying "oh yea we were waiting for a pullback and put some cash to work in MSFT, AOL etc. during FEB and that's why our fund has outperformed our peers...."

To: johnd who wrote (15569)	2/5/1999 5:30:00 PM
From: LindyBill	Read Replies (1) \| Respond to of 74651

Is it the DOJ? YES! This is what is holding it down. If they come out with a win, the stock will double in 3 months, IMO. Any negative decision will cause a further drop.

To: johnd who wrote (15569)	2/5/1999 11:54:00 PM
From: t2	Respond to of 74651

Comparing CSCO, DELL and MSFT DELL is expected to earn 1.47 for calendar 99 CSCO is expected to earn 1.60 for calendar 99 MSFT is expected to earn 1.60 for calendar 99 (after split) Yet, DELL is trading at 100, CSCO at 102, MSFT at 80. Why? Is it MSFTs ability to keep its value too low? Is it the DOJ? Is it that CSCO and DELL are overvalued? Is it that CSCO and DELL have faster eps growth than MSFT? yeah? So what is it? Anyone disagree than MSFT has the tightest grip on its revenues and eps among the three titans? This valuation descripancy puzzled me for a while. I attributed that CSCO and DELL being way too overvalued. Excellent post John! MSFT has 3.5 billion in unearned revenues as well. I bet that MSFT will blow past these earnings forecasts more so than CSCO and DELL-which face much more competition. My only disagreement is that the term "value" is relative. In investing today we should look at relative and not just at overall valuations---at least in the internet age economy (IMHO). Did you notice that a lot of "big cap" nets stocks did OK even with such huge PEs. --- The "money" is out there -----> and Microsoft will find it.