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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 75.26+1.2%Jan 15 3:59 PM EST

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To: Eric L who wrote (28506)10/1/1999 12:39:00 PM
From: Pullin-GS  Read Replies (4) of 77400
 
1800adviser.com

PE=price-per-share/earnings-per-share
If you double the number of shares outstanding (not float), without doubling the revenue, which is what CSCO has done, (increased shares from 5.8BB to 10BB shares), your PE suddenly increases by that factor, because your earning per share has decreased by a factor of 2. The revenue is the same, but has to be accounted for by twice as many shares. Pretty strait forward stuff.

Regards....
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