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

To: Andy Yamaguchi who wrote (21040)	4/20/1999 9:08:00 PM
From: Chee Keong Loh	Read Replies (1) \| Respond to of 74651

Upside probably blunted... I wouldn't go so far as to say MSFT cooked the books, probably more along the lines of: Prudent investing/crystallizing profits. That said, growth of this collossus is evidently slowing....Earnings multiple doesn't deserve to expand on top of its already lofty level. Last Q's numbers were wicked, (70% eps growth??) this time they're just ho-hum. Disclaimer: Really only bearish cuz people are still too optimistic, especially when I see people on the thread saying MSFT is cheap by comparing it with the internuts....

To: Andy Yamaguchi who wrote (21040)	4/20/1999 10:14:00 PM
From: Exacctnt	Respond to of 74651

Andy, You somehow can't seem to comprehend that Microsoft told the investment community in March that they will defer $400 million of Office97 sales that occurred in the 3rd quarter until the 4th quarter. The sales actually took place in the 3rd quarter, however, because the Office97 sales included a coupon that allowed the purchaser to a free upgrade to Office2000, Microsoft, for accounting reasons, decided to defer those sales until the 4th quarter, when Office2000 is released. As a result, Microsoft guided the investment community to revise upward their 4th quarter sales and earnings estimates to accommodate an additional $400 million of sales and the associated earnings, that was deferred. When this was announced, Microsoft told the investment community to lower their 3rd quarter revenue estimates by the $400 million, but not to lower their earnings because they were going to realize an investment gain to offset what was being deferred. The INVESTMENT COMMUNITY was informed ahead of time and already incorporated the above changes in their estimates. How can this be "cooking the books"? By the way, I believe that the additional investment gains were a result of Microsoft selling their holdings of Real Network stock. Regards, Bob