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To: Ed Forrest who wrote (27870)	8/3/1999 2:54:00 PM
From: Gold Beach	Respond to of 41369

Some thoughts on Earnings and P/E: The year 2000 and 2001 projected earnings are $0.60 and $0.88 respectively per Zacks. $0.88 - $0.60 = $0.28. $0.28/$0.60=46.7% earnings growth rate between the years 2000 and 2001. At a current share price of $90, the P/E for year 2000 is $90/$0.60= 150. The P/E for year 2001 is $90/$0.88=102.3. To summarize, the P/E for the year 2000 is three times the earnings growth rate. It is two times the earnings for the year 2001. Armed with this information, the question is: "What P/E's vs earnings growth rate will the market allow?"