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

To: djia101362 who wrote (22520)	5/11/1999 1:58:00 PM
From: Sir Francis Drake	Read Replies (3) \| Respond to of 74651

<<msft is acting like a sick stock right now>> - if you compare how MSFT trades compared to other big cap tech stocks like INTC, yes, it seems sickly. However, there are a lot of issues clouding MSFT stock, the way they don't for other companies. Unlike many on this board, I maitain that the DOJ case weighs heavily on the stock. It is a mistake to look at the history of how the stock traded last year in response to the case. The case looked very different in 98 than it does now. I'm sure everybody remembers the lift MSFT got from the browser decision reversal. From today's perspective, the case looks very black for MSFT, in the judgement of virtually all independent observers. Further, it has to be said straight out - MSFT's legal team is subpar. In fact they are overwhelmed, and incompetent. Neukom has been with the company through old connections - but this is not good grounds for keeping their services in as serious a legal fight as MSFT finds itself in. Their performance has been catastrophic - I can hardly imagine how they could have done worse (it almost seems as if they are secretly working with the DOJ and against their client). The fact that MSFT seems not to understand the gravity of the situation, is also not reassuring to the market. Longer term this is a coiled spring situation. The deals MSFT is closing, the investments they are making, are all common knowledge, but are not reflected in the price - they are not being rewarded. This means, that as soon as there is some kind of resolution of the case - almost any resolution, MSFT will explode upward. Until then - it will remain sickly. Sure, there will be spikes around earnings and key events, but basically, I look for this kind of listless meandering in the price for quite some time. I'm sitting on my long term shares, and doing a bit of trading with a trading block of MSFT, but frankly, I'm not very bullish short term. This of course is JMO, and many on this board make a very good case for MSFT taking off imminently, so, as always, there is room for many views.