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Technology Stocks : How high will Microsoft fly?
MSFT 492.01+1.3%Nov 28 9:30 AM EST

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To: johnd who wrote (14924)1/21/1999 9:38:00 PM
From: J. P.  Read Replies (1) of 74651
 
<MSFT's 12 month trailing EPS is now at 2.29
So what PE range will it trade this Q?

2.29 * 50 => 114.5
2.29 * 55 => 126
2.29 * 60 => 137.5
2.29 * 65 => 148.5
2.29 * 70 => 161
2.29 * 73 => 167>>>>>>

I believe this logic to be flawed. Microsoft is growing their top line so fast, with such huge net margins, that you cannot use trailing EPS as an indicator of future PE. Plus don't forget the rollout of Windows 2000 which will be a cash cow. This stock is a winner.
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