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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: Daiju Kohno who wrote (14553)1/19/1999 4:50:00 PM
From: Reginald Middleton  Read Replies (2) | Respond to of 74651
 
This was perhaps the silliest thing I've heard a "professional" say on TV. She (like many analysts and fund managers) relies so heavily on PE that without PE, they feel helpless and clueless. The fact is, the PE ratio is over-rated. (MSFT's PE was considered too high when the stock was at 23 cents!) Maybe that's why so many professionals fail to beat the market- because most of them rely so much on the PE ratio.

Please allow me to illustrate the problem with PE, and unlike many "pundits" articulate a practical solution to tech stock valuation. See rcmfinancial.com