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To: GST who wrote (78290)	9/23/1999 8:01:00 PM
From: dbblg	Read Replies (1) \| Respond to of 164684

GST, Are those actual downside targets or do you just mean you see a lot of carnage ahead? If the former, what kind of model are you using?

To: GST who wrote (78290)	9/23/1999 8:35:00 PM
From: Elmer	Respond to of 164684

Unfortunately, I agree with your take on the market decline. I look at price to sales ratios on the bellweathers like Cisco and Microsoft. In the last year, those two companies have seen decreases in sequential revenue growth rates and have traded at P/S ratios roughly 2+ times the average of the preceding seven years. The conclusion is that either history was wrong in pricing these stocks or these stocks are in for haircuts. I like CSCO but it could be below $40 if this mini-down move gets legs. Your observation about 75% haircuts is right on. I was there on several stocks last Oct.