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

To: Paul Reuben who wrote (18455)	3/22/1999 7:24:00 AM
From: John Carragher	Read Replies (1) \| Respond to of 74651

TECHNOLOGY ALERT from The Wall Street Journal Interactive Edition. March 22, 1999 Microsoft plans to begin settlement talks with the Justice Department and 19 states, seeking to end the antitrust trial that has shed a harsh light on its business practices. The two sides remain far apart on some fundamental issues, but they both expect talks to occur shortly.

To: Paul Reuben who wrote (18455)	3/22/1999 11:35:00 AM
From: Hal Rubel	Respond to of 74651

Citizen Gates -Begins to Come Around! Gates to Negotiate on the Issues (from CNN) "The Justice Department and 19 states accuse Microsoft (MSFT) of abusing its monopoly in computer operating systems to stifle the competition. The government argues that Microsoft linked its Internet browser, Explorer, to its Windows operating system, making it harder for rival browser Navigator, made by Netscape (NSCP), to compete. Microsoft has been under growing pressure to settle the lawsuit, as prosecutors have made a strong showing in court. A Microsoft official said that the company is willing to change alleged exclusionary contracts with its Internet partners and give personal computer makers more flexibility in adding features to the Windows start-up screen." Hal PS: "However, one of the most contentious issues -- Microsoft's practice of adding new features to Windows that allegedly target potential competitors -- is not up for negotiation, the official said. Microsoft lawyers view such product integration as the weakest part of the government's case" (CNN) IMHO, this is the most important part of the case. If MSFT can no longer sabotage competitive products, it can not "compete" as effectively in the post monopoly lawsuit marketplace. Growth will continue, but will not be capitalized at current PE levels because what it is that has made MSFT unique will no longer be part of the stock. HR