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

To: taxman who wrote (20970)	4/20/1999 6:16:00 PM
From: Teflon	Read Replies (1) \| Respond to of 74651

All things considered, taxman, MSFT's revenue growth was just fine. First, I think this Q will go down as one of the slowest PC growth Qs in history as we just came off strong year end sales last year and most people are postponing their additional new purchases until later in the year (for many of the reasons/opinions I gave earlier). Secondly, remember, MSFT had to move $400MM of revenue into Q4 and this has to be factored in. Given the context of where this quarter falls in relation to overall timing and considering the soon to be product release on the near term horizon, I beg to differ with the author of the article. MSFT did great this Q, all things considered. I believe any dip will be short lived. Teflon

To: taxman who wrote (20970)	4/20/1999 6:28:00 PM
From: Sir Francis Drake	Read Replies (1) \| Respond to of 74651

I wish I could be optimistic about MSFT share price over the short term. Unfortunately, the prospects over the next few months do not look good. What matters is not the reality, but perception. I don't think this report will be seen as bullish. Income derived from investments, slow rev growth - this is not good for "perceptions". Just as with INTC, MSFT will get punished. Maybe we can get some upgrades or whatever, but other than that, what do you imagine we have to look forward to? The trial? The problem is - there is no "story". Nothing for the market to grab onto and run with. And there won't be for some time. I'm afraid it will be a long time before we break the 95 level. And dead money is money the momentum chasers abandon. Short term, I'm not optimistic. OTOH, there is support at 74, and again, very solid support at 67 1/2. I don't know how far down it'll drift, but for the time being, it'll be range-bound. Of course, I wouldn't dream of selling MSFT, especially if you've got big gains in it - long term the prospects are good, and this is a core holding, but if you want to chase hot money - turn to the nets. It'll be interesting to see tomorrow's action. It's undeniable that there's been a terrific amount of institutional selling of MSFT going on the last couple of weeks - accross the board. Short term, this is bound to hurt the stock technically. Longer term, next 2-3 years, I'm a bull, but short term, I'm not going to look at my MSFT holdings for awhile (I am counting on a good buying opportunity in the coming months, at which point I'll add to my core MSFT holdings). Good luck to all MSFT holders - present and future!