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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Robert Douglas who wrote (92818)	11/18/1999 6:29:00 PM
From: f.simons	Respond to of 186894

>> Will P/E's of 30+ be proven to be reasonable and long lasting? Since this debate is not only applicable to Intel but to much of the market these days, I will leave its discussion for a different forum.<< I saw a talking head recently that was making a really interesting argument re PE's. His thesis was that PE evaluations were an invention of the Industrial Revolution and that they worked great for about a century. But, the Internet/computer phenomenon is an economic and social event of at least equal magnitude as the IR, and we need new models to value stocks. That is, not all 1000 PE stocks are going to crash. He pointed out that dividend yields are practically a joke. Who pays dividends anymore? But this used to be an important measure of market valuation also. I am not advocating his position, but it is interesting. It may have been Larry Kudlow, who I realize is ridiculously (?) bullish. But he has been right on for a while now. Frank