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To: Janice Shell who wrote (2824)	5/27/1998 9:49:00 AM
From: John Chapman	Respond to of 7491

Janice: Please read your quote of Michael again more carefully. He did not post that PE's were based on revenues.

To: Janice Shell who wrote (2824)	5/27/1998 10:04:00 AM
From: Michael R.	Respond to of 7491

Exactly, however if you look at P/E's I think that you will notice that tech. and Internet stocks generally have higher P/E ratios because of their higher profit margins and lower costs. For example Ford and Continental Airlines have very low P/E ratios, however they have extremely low profit margins, besides the fact that their business is very tied to the condition of the economy. the software industry has very high P/E's across the board. I said the P/E was based on industry, not revenues.