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

To: alydar who wrote (62441)	11/1/2001 12:03:26 PM
From: Brian Sullivan	Read Replies (2) \| Respond to of 74651

hey Rocky, If you omit the one time charges for investment losses the PE is 34. What is the current PE for SUNW? Oops, it can't be calculated since their earnings are negative.

To: alydar who wrote (62441)	11/1/2001 12:38:22 PM
From: David Howe	Read Replies (2) \| Respond to of 74651

<< hey guys, the p/e is over 52 >> Not a good way to look at it (unless you want to lose money on your short). Forward PE is around 31 and if you take out the $10 in cash and investments you get a PE of around 26. That's cheap for a Dow stock, especially since MSFT is just about the only Dow stock with great growth potential ahead of it. You are simply shorting betting that the market will fall. You are betting that the economy falters further. There is no MSFT specific reason to short at this time. IMO, Dave

To: alydar who wrote (62441)	11/1/2001 2:20:22 PM
From: Timetobuy	Read Replies (1) \| Respond to of 74651

Forward pe isn't nearly that high and valuation alone is never a good reason to short a stock. Valuations expand in a low rate environment and I think that it's likely that the improving economy will improve pc sales, somewhat and msft does get some revenues from other areas. I don't short. I'd rather go long on stocks. If I were to short msft though, it certainly wouldn't be down here. The valuation isn't THAT bad and there are plenty of others that have higher valuations. Watch supply and demand. It ALWAYS matters. When people want to buy this stock, going against the crowd is likely going to be unprofitable.

To: alydar who wrote (62441)	11/1/2001 4:07:03 PM
From: FR1	Read Replies (2) \| Respond to of 74651

I'm not sure counting new machines is a good idea. A major unknown to consider is the number of existing units running win9x that never paid for the product and will be forced to buy XP. Nobody knows the statistic but I bet if you walked into any small business they would have one or two registered copies of win9x and all the other machines would be running the same copy since there is no way to police it. This has been my observation and I bet it is true everywhere. All those units will now have to pay for a copy or run win9x forever.