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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Kenya AA who wrote (41443)	12/28/1998 11:05:00 AM
From: Night Writer	Read Replies (3) \| Respond to of 97611

Kenya, Interesting. I use projected PE, not trailing PE as an indicator of stock value. Of course, this doesn't work well on story stocks. <g> IMHO The projected PE indicates that Compaq may be trading at a discount to future earnings. I'm guessing earnings of $1.80 to $2.00 in 1999 with more growth in 2000. This earnings guess indicates a stock price of $50 with a PE of 25 is very reasonable with interest rates running around 4%. Now you tell me PEs are a crock!!! Based on what you are saying, I should sell CPQ and jump into Internets with my retirement money. Which Internet stock should I buy? NW