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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Warkentin who wrote (49829)	3/11/2001 9:29:44 PM
From: Maher Sid-Ahmed	Read Replies (1) \| Respond to of 77400

For MSFT to have a p/e of 25 and a share price of 100, it has to earn 100/25*6 billion or $24 billion (MSFT has 6 billion shares.) Since MSFT annual revenue is less than $30 billion it is impossible for them to earn $24 billion. The same argument holds for CSCO, INTC, and others. The valuation that was given by WS to these companies is just too high, and I fear that some of these large caps may have to correct even further. By the way I recently bought CSCO, INTC, SUNW before the INTC warning, and now I feel these stocks are going to be dead money for sometimes to come. Companies with a large float and large cap have to work extra hard to earn their valuation. In a shrinking market it may be impossible to do IMO.