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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: johnd who wrote (42884)	4/21/2000 5:51:00 PM
From: johnd	Read Replies (2) \| Respond to of 74651

Current forward PE is 27 to 38 depending on what you think MSFT will do in FY01; much lower than than the life average of 40.

To: johnd who wrote (42884)	4/21/2000 7:32:00 PM
From: David Howe	Respond to of 74651

<< Average PE since going public in 86 is around 40. But Once a company reaches gorilla status, it demands a higher PEG like Coke, CSCO >> This I completely agree with. CSCO has a PE around 180 and we all know that KO has maintained a very high PE considering it is NOT a growth company. Low single digit growth and a high PE in this market is not unusual if you are a major player with a solid fundamental business like KO or MSFT. If you think the DOJ or an occasional slow quarter put into question MSFT's fundamentals, you should think again. They are both blips on a short term screen, especially at today's stock price (74). Dave