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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: sylvester80 who wrote (33781)	2/26/2002 7:13:01 PM
From: Softechie	Read Replies (2) \| Respond to of 99280

The Dow is some sort of bubble too. Valuation is way high for slow growth companies. High-growth like techs in Nasdaq I'll go for 20-25 P/E but Dow for 10-15 P/E. Dow P/E is now over 27. Much worse than last year of 21.

To: sylvester80 who wrote (33781)	2/26/2002 7:17:46 PM
From: 4rthofjuly007	Read Replies (1) \| Respond to of 99280

In tech, I agree that the old leaders won't lead the next bull. However, I think that the old leaders like MSFT have a severe beating that needs to be taken before the new leaders emerge. I'm talking about share price appreciation, not marketplace leadership. MSFT will always be a behemoth. They just probably won't be the same money printing machine that we are used to. MSFT is actually the perfect example. They seem to be diversifying like mad. Buying interests in cable companies, Korean telecom companies, expanding into CRM. These are new businesses to softie that may not carry the same growth rates and gross margins. I think that this will result in the old multiple shrinkage.<g>