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To: Fred Fahmy who wrote (86238)	7/27/1999 10:44:00 PM
From: jmac	Read Replies (1) \| Respond to of 186894

Your post to me caused me to look at PE's of some of my holdings-- MSFT, CSCO, LU, QCOM, MSPG, AAPL, INTC NXTL and RMBS. Although I am not amazed that MSFT, LU, QCOM, and CSCO are outrageous. I was amazed to find that INTC is just around 31, GTW is just around 31, and AAPL is under 15 (that can't be right)! I am now looking at GTW Jan 2000 leaps. I already own a bunch of AAPL. I will wait, however, until the employment cost number comes out on Thursday as this number will dictate the direction of the market for August.

To: Fred Fahmy who wrote (86238)	7/28/1999 7:38:00 AM
From: GVTucker	Read Replies (1) \| Respond to of 186894

OTOT Fred, RE: In CSCO case (and keep in mind I think it is one of the finest companies in the world) their P/E has really escalated in recent years. CSCO use to have a P/E of 35-45, more in line with their growth prospects. It has only been recently that it has climbed to nearly three times those levels. I just don't see how CSCO can justify a P/E around 100, especially with a new giant competitor (LU) emerging in recent years. It is even more extreme than that. I pulled out an old research report from when I first bought CSCO, in Dec 94. "We believe the stock, which currently trades at 18x forward EPS, could trade to the low $40 level, which would equate to 22x our CY 95 EPS of $1.90." The stock was $33 then, and has split 4 times since. (I haven't been a participant in the last two, unfortunately.) It still amazes me how the attitudes toward different stocks can change so drastically.