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


To: johnd who wrote (50561)10/4/2000 2:51:34 PM
From: alydar  Read Replies (2) | Respond to of 74651
 
<<With 5% growth, it should command only 5 PE or about $9,
don't you think?>>

I really do not know. All I can tell you is that it is going down and the market is making a statement.



To: johnd who wrote (50561)10/4/2000 2:57:46 PM
From: Wallace Rivers  Read Replies (1) | Respond to of 74651
 
He's talking rev. growth, and bottom line growth should be a much higher %. You are correct in that the old rule of thumb was that the PE should match the bottom line growth rate. That doesn't seem to hold water any more.
With MSFT, you also need to factor in things like the fact that is the undisputed leader in one of the world's most important industries, and other such "intangibles" IMHO.