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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (16759)	7/12/2006 1:26:59 AM
From: Elroy	Read Replies (1) \| Respond to of 17183

that PE is deceptive. GOOG expenses options, and analysts are looking at cash flow. GOOGs cash flow is approaching one billion per quarter. I think you mean operating cash flow, not free cash flow. So if GOOG does $4 billion in operating cash flow per quarter, and their market cap is $130B, that a price to operating cash flow of 32.5x, still not too low. And if CapEx is half of operating cash flow (which seems likely they way they are spending), then market cap to free cash flow is 65x. That's not too attractive, especially when the comparable numbers for OVTI (which just reported record revenues and is about to report them again) is about 8x.