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To: mish5000 who wrote (3966)10/1/2002 12:00:59 PM
From: sandeep  Respond to of 10157
 
And your evidence is?? The old bear markets and the worst PE afforded to not so great companies?

Let's see. IBM was in 1970s where MSFT and CSCO are today. What was the worst stock price of IBM in 1972-1982?

It was 159. That is approx 9.9/share of today's shares (after adjusting for stock splits). How much do you think it made at the time per share? If it was between 15-30/share and that it had $38B in cash, then maybe the PE ratios you suggest can happen.