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Technology Stocks : How high will Microsoft fly?
MSFT 459.87+0.7%Jan 16 3:59 PM EST

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To: Dave who wrote (71522)7/23/2002 7:29:54 PM
From: David Howe  Read Replies (3) of 74651
 
I calculate the forward PE as $42 / $1.90 = 22

Not bad for the strongest company in the world. One of the few tech companies that still turns in fantastic operating results while the rest of them turn in losses. The cash ($8 per share and growing) does count for something. Even something beyond the income it generates. WCOM would not be trading at .14 if they had cash instead of debt.

With that said, the stock can go to just about any value during a bear market. There you go. The value of cash is that it probably won't trade below that value; around $8. <g>

IMO,
Dave
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