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

To: Uncle Frank who wrote (15607)	2/6/1999 7:55:00 PM
From: t2	Read Replies (2) \| Respond to of 74651

Uncle Frank, I could not believe people were selling this stock at 155 on Friday. Do they not realize that even if we don't get a spectacular run up to split and then to earnings----the stock would be significantly higher than 155? I think the mutual fund managers were big buyers Friday---increasing their position in MSFT in order to help them keep up with the S and P 500. I think very soon the big funds will go overweight in MSFT so they can beat the index. I still feel a lot of unhappy holders of IBM stock probably want to do a switch with MSFT. These factors are going to push the stock much higher and maybe even faster than I had suspected. I was hoping it stabilizes between 160 and 170 for another month. I actually shorted(in my margin account) the Feb 175 calls (a few days ago) to cover half my position and the Intel Feb 145s to cover all my Intel position.(did not want to take the chance that all my MSFT shares would get called away). Looks like I can keep my shares. In my retiment account, I added a bunch of April calls with varying strike prices the last 2 days. I have a lot MSFT April call options. In one month, I plan to add a lot more (way out of the money) if we DON'T get a big run up for the next month---that would be lottery buying time!! If we do get a run up even this month, I will be selling my current call holdings. BTW--Since very high strike prices are available for MSFT, the possibility exists that the furthest out of the money call options might trade at only at 1/4 or so. However, we need the stock to stay low for another 1 1/2 to 2 months for that opportunity to materialize.