Greg; RE:"CFO quoted, 'valuation' of the company was too high..."
Truly, at P/E= ~50, +40% over historical P/E= ~30, Greg.
As you also said, "The air is out of the balloon..." (perhaps unintentionally), which implies that, with the NAZ valuations already down, what happens next is that the air goes back in to the balloon :-)
I'm sure you meant to say, "The air will come out of the balloon", n'est-ce pas? ;-)
And this is certainly possible, a devaluation to ~125 even probable, as you say, "no matter what happens with earnings", meaning - even if they are at First-Call estimates.
So, I agree with your reasoning, Greg, because it is not illogical.
My essential point is this: if MSFT tanks, then it will not go down without causing a re-valuation of the entire Tech market; and, not just in The States - but worldwide.
Re-valuation of a (what did you say, ~180 billion dollar?) pre-eminent chunk of equity capital, would not be an isolated event.
-Steve |
