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


To: nihil who wrote (21604)4/26/1999 1:56:00 PM
From: johnd  Read Replies (1) | Respond to of 74651
 
Forward looking statements.

MSFT closed 1998 at 139 or 69.5 after split.
I want to guess where it would be end of 99.

Earnings based:
---------------
At end of 98, it had 1.02 in year ending EPS,
or was at about 70 PE. Assuming the PE stays
constant, and a calendar 99 EPS of (1.65, i.e.
.35, .40, .40, .50) at 70 PE, 115 could be
achieved?

Assuming a 15% down risk for Y2K funds outflow,
we could safely assume 100?

Year over Year based:
--------------------
69.5 -> 50% Y2Y appreciation => 105
69.5 -> 60% Y2Y appreciation => 112

What do people think?



To: nihil who wrote (21604)4/26/1999 6:57:00 PM
From: blankmind  Read Replies (1) | Respond to of 74651
 
Nihil - you must be a CPA like me - or you're very learned

- actually, you say that Dell & Intel's puts were exercised - which means the holders got something. I have to believe the holders got the differ. between strike price & actual.