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

To: ed who wrote (23311)	5/27/1999 2:30:00 AM
From: Scott Overholser	Respond to of 74651

>>It is the big market which decides how high is high or how low is low about PE<< i think you're right on the money ed. decisions are best left to the market. investors should be content with following. >>PE in today's market is just too low for MSFT. << woah - now you're back to making the decisions. i'm not making any predictions here. i just have noticed that value stocks are coming back into fashion after being neglected for the last 4 years while the large-cap bull market ran it's course. look at home depot fer instance: after an amazing run over the course of 5 years, home depot had to trade flat for 4 years while earnings caught up with stock price. i'm not suggesting that microsoft will do the same thing. however, we must be prepared for it and not attempt to superimpose our own judgement on the judgement of the market. the market always wins. we always lose (our money.) microsoft has great potential still but the market will insist on accelerating earnings and growing margins before granting microsoft a higher multiple. maybe win2k and office2k will make it happen. maybe not.