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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (50332)	7/11/2002 12:51:56 PM
From: Steve Lee	Read Replies (3) \| Respond to of 64865

I predict the major indices will be significantly lower than today's levels five years from now. If you don't like historical PE's consider PS ratios. Also consider why you don't like PEs. Today we have the lowest E for many decades. When previously was the sum total of profits for ALL stocks in a major index less than zero?

To: JDN who wrote (50332)	7/11/2002 3:51:45 PM
From: Humblefrank	Read Replies (2) \| Respond to of 64865

The problem is that so many options have been given away over the last five years that stock price comparisons aren't valid. I don't know where to check the number of shares on a stock like Sun, but they might have 50% or more shares as they did in 1997. This is true with all the stocks on the major indexes and it explains why the PE's are so bad even as the market falls back to 1997 levels. It's also a problem that has no historical comparison, but it does seem likely that the real implications of it will assert themselves. It would be silly now to think that the old rules don't apply.