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

To: ed who wrote (15586)	2/6/1999 1:51:00 AM
From: t2	Respond to of 74651

Ed, If most of the investors in MSFT were just retail (like you and me), we could have a PE of 125 or above today. It is those mutual fund managers using some ancient formulas to sell the stock (something like technical analysis). Just because a stock goes up, there is no reason to take profits and move on to something else. I sense a lot of fund managers do this a lot. They stick to some ancient valuation models and follow it religiously. These guys think that by moving to an underperforming sector, they will have a chance to make some more money. You are better off not selling a stock like MSFT. Short term they may look smart (like today) but later will be wondering why the index outperformed them again. Short term some of these techniques like TA might work but in the long term it is the fundamentals. THey will be buying back at higher prices!