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To: d_trader_99 who wrote (33813)	10/26/2000 6:00:59 AM
From: Whistler30	Respond to of 54805

This why MSFT got the response it did to it's moderate increase and forecast for earnings. With a PE of 36, MSFT now has a 35% growth rate - maybe this will be the endpoint all securities are headed for regardless of forward guidance - multiple contraction toward historic levels. Whistler

To: d_trader_99 who wrote (33813)	10/26/2000 9:52:23 AM
From: EJhonsa	Read Replies (1) \| Respond to of 54805

NT's PE is over 100. The haircut cannot be avoid. Actually, Nortel's trailing P/E is now around 60. Hardly unreasonable for a company growing as fast as they are, especially considering that, going forward, optical-related sales should grow as a % of their overall revenues. Also, although I agree that valuation always matters significantly, I hardly think that the PEG is the best method of valuing high-growth companies. Here's a post I wrote on the subject a while ago: Message 14172872 Eric