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Technology Stocks : BAY Ntwks (under House)

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To: George A. Roberts who wrote (6934)8/13/1998 2:20:00 PM
From: Kenneth E. Phillipps  Read Replies (1) of 6980
 
George - Lets look at Zacks -

Cisco's projected earnings for 1999 (Jul to Jul) are 2.17
1998 earnings were 1.76

Nortel's projected earnings for 1999 (Dec to Dec) are 2.37
1998 projected earnings are 1.91

Bays projected earnings for 1999 (Jun to Jun) are .96
1998 earnings were .65

Do the math and I think you will conclude that Nortel/Bay is projected to grow at approx. the same rate as Cisco. The difference in projected growth rates does not justify the difference in PEs.

Ken

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