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

To: taxman who wrote (20566)	4/15/1999 4:19:00 AM
From: Kevin Hay	Read Replies (1) \| Respond to of 74651

PC pricing pressure = good for msft. ''Intel reported lower revenues driven primarily by lower ASPs (average selling prices),'' said Dan Niles, a BancBoston Robertson Stephens analyst, in a note to clients. Niles slashed his 1999 and 2000 earnings estimates, to reflect a tighter pricing environment. Niles cut his 1999 earnings estimate to $2.25 a share from $2.42 previously and his 2000 earnings estimate to $2.55 a share, from $2.80 previously. dailynews.yahoo.com When I weigh what I've been hearing about pc companies problems, the vast majority are citing pricing pressure. I've heard very little about any decline in unit demand. And what I have heard is attributable to seasonality, which is a fact that anyone that's been around for a while knows. I've started a trading position at 86. I'm hoping this is short term but will get more if it goes below 80, and hold, though I'm doing this on margin. I don't usually trade msft, but this sell off looks too juicy to pass up. Some day msft will hit a top -- perhaps when pc's are as common as microwaves…? Oh yeah, and Windows is in the microwave too -Kevin

To: taxman who wrote (20566)	4/15/1999 10:44:00 AM
From: t2	Read Replies (1) \| Respond to of 74651

We might be heading towards a tech stock buying opportunity of the year. A lot of the experts are now saying how techs are overvalued. They were less daring a little while ago. We should see all the sell side experts show their face on TV---in a confident manner. That is the best bullish indicator we can imagine. I bet the ones who think the net stocks are way way overvalued will not be daring enough to say it. I just thought them because everyone else did and made some money-----just momentum buying and nothing more. In fact I hate them as investments. The only net stock I like is MSFT which holds the key to the internet---the best browser out there. Give it a few months and we could see a stripped down operating system with IE on the computers---the emachines. MSFT will put their internet sites along with the PC makers in prominent positions resulting in good traffic to the site. There is no monopoly in the browser market. That is why they can sell an emachine (through boxmakers like Dell) to compete with AOL's plans. I don't think an antitrust suit will work in that arena. I think MSFT is being underestimated in its ability to respond to market conditions. I am pretty sure that AOL, Sun Microsystems, IBM , Novelll are not paranoid for no reason. They have every reason to be worried or scared. IMHO, they will be facing serious harm to their businesses---just give it a few months. In addition, AOL could get isolated as other ISPs will be willing to work more with MSFT as it is not dominant in the ISP biz. The acquition of Netscape, IMHO, was one way to kill off Netscape. Netscape might have been the choice of ISPs if it did not have ISP biz competing with them. Now MSFT is the choice by default!! Just my bullish MSFT views---I obviously could be wrong!!