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To: Wally Mastroly who wrote (8308)9/1/1999 11:38:00 AM
From: E_K_S  Read Replies (2) | Respond to of 15132
 
Observation on S&P 500 per CNBC this AM....

It was reported this AM on CNBC by one of their market analyst that if you take out the 20 highest PE companies from the S&P 500 the average PE for the 480 S&P companies was 18!

This is very interesting that 4% of the S&P companies would drive the S&P PE to 27.

I suspect if you look at these 20 S&P companies they probably generate (1) a large percentage of the overall S&P growth, (2) reflect a large percentage of the group's annual sales and (3) may even account for the higher than normal S&P earnings growth.

Still it is an interesting observation.

EKS