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faceoff508
06-13-2002, 04:31 PM
Microsoft Corp. shares rose almost 6 percent in heavy trade on Wednesday on a rumor that the company would pre-announce that it expects to beat its fourth-quarter forecast, analysts said.

But the company declined to comment on the rumors circulating in the markets, saying it has not provided an update to its guidance since reporting results last quarter.

Analysts said they expected Microsoft to beat its own forecast but not to pre-announce that result. Microsoft has a history of reporting higher numbers than expected because its guidance is conservative, they said.

Microsoft shares closed at $55.54, up $2.97 on the Nasdaq, making it the third-largest net gainer for the day on Nasdaq.

About 68 million shares were traded on the exchange, more than twice the average volume over the past 30 days.

"I'm pretty comfortable they're doing better than the consensus forecast," said Robert Austrian of Banc of America Securities.

Analysts polled by Thomson First Call were expecting the Redmond, Washington-based company to post earnings per share of 42 cents and revenue of $7.06 billion, on average.

Microsoft's guidance for the quarter ending in June is for earnings per share of 41 cents to 42 cents and revenue of $7 billion to $7.1 billion.

Austrian said Microsoft shares have been the beneficiary of volatility in the shares of smaller software companies as investors seek a safer haven in the sector.

In addition, Microsoft's proven business model and a new licensing strategy that was expected to boost sales have supported the stock, he said.

"This preference for Microsoft's increasingly reliable model has been helping their shares outperform for a month or two," Austrian said. "Microsoft is about the most stable software company there is."

Other software companies have been issuing earnings warnings and getting downgraded by brokerages in recent weeks. Goldman Sachs cut its estimates for about two dozen software companies last month and then did the same for Siebel Systems Inc. this week.

"Many of the smaller to medium-size software companies are missing (their estimates), so investors may have decided to park their money in more established companies, like Microsoft," said Ken Kiarash of Buckingham Research Group.

"Sales of Xbox are going well, Visual Studio .Net is going well," he said of several Microsoft product releases. "Overall, they're having a pretty decent quarter."

Shares of Microsoft have lost about 21 percent since the start of the year and almost 23 percent over the past 52 weeks.

---TXB

UltimateAg
06-13-2002, 04:35 PM
The excitement didn't last long. MSFT is down 2.38% today (Thursday 6/13) at close.

faceoff508
06-13-2002, 04:36 PM
Originally posted by UltimateAg
The excitement didn't last long. MSFT is down 2% today (Thursday 6/13) at close.

Damn!! oh well, shares arent everything!!

UltimateAg
06-13-2002, 04:41 PM
Originally posted by faceoff508

Damn!! oh well, shares arent everything!!

You are so right. Most people associate the economy with the market and that's dead wrong.

faceoff508
06-13-2002, 04:49 PM
Originally posted by UltimateAg


You are so right. Most people associate the economy with the market and that's dead wrong.

So if Sony is doing very well in the market, it doesnt mean that its stock would be rising??

UltimateAg
06-13-2002, 05:06 PM
No I was speaking in more general terms, the national economy. A particular stock's day-to-day value is an indicator of 1 thing only, the opinion of a group of analysts on the company's short term future. So yes if Sony announces that it has erased Microsoft from the console business it's stock will go up, but it's about making money. Who is going to make the most money in the long term, Microsoft will not even break even regarding the xbox for at least another year.

faceoff508
06-13-2002, 05:10 PM
Originally posted by UltimateAg
No I was speaking in more general terms, the national economy. A particular stock's day-to-day value is an indicator of 1 thing only, the opinion of a group of analysts on the company's short term future. So yes if Sony announces that it has erased Microsoft from the console business it's stock will go up, but it's about making money. Who is going to make the most money in the long term, Microsoft will not even break even regarding the xbox for at least another year.

Oh, okay i see!! Thanks

Xbox Owner
06-13-2002, 05:18 PM
Originally posted by UltimateAg
No I was speaking in more general terms, the national economy. A particular stock's day-to-day value is an indicator of 1 thing only, the opinion of a group of analysts on the company's short term future. So yes if Sony announces that it has erased Microsoft from the console business it's stock will go up, but it's about making money. Who is going to make the most money in the long term, Microsoft will not even break even regarding the xbox for at least another year.

Yeah..so true..:) it is only opinions and that stuff..:rolleyes:

Nato King
06-13-2002, 05:23 PM
I also have been watch microsoft shares since the xbox had come up and little by little it had been getting high.:)

Nerrad529
06-13-2002, 08:34 PM
Microsoft shares could boom really soon!!!!!

mahalan
06-14-2002, 01:43 PM
If I wanted to hear crap like this, I'd start taking calls from my broker. I thought this was an Xbox forum, not some stock market commentary.

faceoff508
06-14-2002, 01:46 PM
Originally posted by mahalan
If I wanted to hear crap like this, I'd start taking calls from my broker. I thought this was an Xbox forum, not some stock market commentary.

Whats your promblem?:mad:

mahalan
06-14-2002, 01:52 PM
My problem is that I really don't give a crap about what MS stock price is doing despite the fact that I've been a shareholder since 1986.

DZNUTZ
06-14-2002, 03:00 PM
hey mahalan....how old are u? do u only buy stocks? or do u buy bonds as well...cause if u do, do both of us a favor and drop me a pm.......i'm a broker and i can beat just about anybody on bond prices.