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Technology Stocks : How high will Microsoft fly?
MSFT 478.53-1.0%Dec 12 9:30 AM EST

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To: JC Jaros who wrote (51327)10/16/2000 8:11:01 PM
From: David Howe  Read Replies (3) of 74651
 
One more comment for all of you SUNW fans out there. The stock market always overshoots fair value. The market in the long run is driven by fundamentals and in the short run by greed, fear, momentum, short term perspective, etc. Right now the market is moving the price of SUNW to an extremely overpriced valuation and the price of MSFT is undervalued.

When the momentum changes the stocks will return to fair value (ie. MSFT $85 and SUNW $70).

At this time, a trailing PE of 31 for MSFT is unreasonably low and a PE of 101 is outrageously high for SUNW.

IMO, Dave
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