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

To: Frank Ellis Morris who wrote (17227)	3/4/1999 7:52:00 PM
From: t2	Read Replies (2) \| Respond to of 74651

Frank, There has been a big selloff in these stock that don't really have any danger of missing their earnings projections for this quarter. In my opinion, the selloff may have occured because of 1. bond yields going up---and the fear of the employment report tomorrow.--it might have kept the buyers out. 2. the weakness in PCs sales; I feel it is really due to the slowdown as a result of people wanting to buy Pentium IIIs or get better deals on Pentium IIs. 3. the buyers just decided to wait it out hoping investors dump good stocks along with bad ones.-- Why should these stocks go up; As long as the employment report is not too scary, we should start seeing the massive amount of cash sitting in money market funds go into stocks. Maria reported on CNBC that a lot of cash went into stock mutual funds in the last 3 days with a large portion of it going to technology funds. My feeling was that investors with cash just waited it out hoping to catch the bottom in the tech sector. However, tomorrow as we get the employment stats out of the way and get some stock buying and the Nas closes up for the day---everyone sees the weekend report and decides to shift funds from money market to tech stock funds or general stocks funds. Then we have all those tech fund manager (and other stock fund managers) sitting on a lot of cash themselves bottom fishing. In my opinion, the moves might be very rapid--creating a lot of momentum. Then we have the european and Japanese investors seeing their currencies going down against the US dollar. So they want to be in US treasuries. They also want to be in tech stocks that are dominant on a global scale----and these companies can sustain growth--anybody remember the incredible GDP numbers. They want to buy stocks which are the least likely to disappoint in earnings. Cisco has been on a roll---comes in line with earnings everytime. Microsoft usually blows away the estimates. Intel has a good excuse even if they miss this quarter---temporary problems due to the transition to Pentium IIIs. None of these 3 have serious competition. I think a lot of people just want that employment report out of the way. US interest rates can't keep going up as the dollar strengthens. Just my random ideas.