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To: Scott Mc who wrote (141)6/24/1998 7:26:00 AM
From: Ally  Read Replies (1) | Respond to of 512
 
Scott, you've made valid points on P/S ratio. I just want to add that P/S is more useful in tech companies than say, consumer items companies. A consumer item company can easily get the top line growth by simply cutting margin and beating the competitors. Not so for tech company... no matter how low the sales price, if the technology don't fit, customers won't buy.

Just curious, did the Ken Fisher book on P/S ratio differentiate between companies? Also, what would be a rule-of-thumb p/s for a tech company?