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Technology Stocks : How high will Microsoft fly?
MSFT 491.12+1.7%Dec 8 3:59 PM EST

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To: johnd who wrote (14475)1/18/1999 2:00:00 PM
From: t2   of 74651
 
Re: PE of MSFT

I hope everyone read that reuters news report which was posted by a couple of people. READ the third line from the bottom about the company's internet revenues (about 10%). Internet stocks are so highly valued and are not dropping---that is , investors are still willing to bet on them succeeding long term. If MSFT has such VERY HIGH REVENUES from its net business, do you think a trailing PE of 70 (after earnings) is too high. I think it is a bargain especially if you factor in the "unearned revenue" effect.

I think a weighted average PE of its business is more appropriate for this company---which could result in a trailing PE of 75 to 80 (after factoring in tomorrow's earnings) is very reasonable.
JMHO
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