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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: Ed Schultz who wrote (4763)1/23/1998 4:40:00 AM
From: Sunny Lee  Read Replies (1) of 74651
 
>>A PE of 50, even for a great company like Microsoft, is a bit high??

MSFT's high P/E don't reflect it's real earning, 20% of earning from each quarter is deferred to next few quarters and its deferred earning size is piled up, probably few billions. Had MSFT include deferred earning in their current earning release, P/E would have come down to 30 something P/E to trailing earning.

Good Trading.
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