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To: kendall harmon who wrote (99208)	2/14/1999 3:32:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Kendall, I agree with virtually everything you said except for the following: A PE higher than EPS growth rate results from psychology, not financial analysis. Not true. PEG is an outmoded way of looking at companies because it assumes that PEs are constant. In fact if you look at sophisticated financial analysis tools like DCF you will discover that given the same growth rate assumptions PE will vary greatly depending on long-term interest rates. If long term interest rates drop, PEs rise and vice versa. As a result, PEGs will be greater in a low interest rate environment than they will in a high interest rate environment. That consideration is what prompted me to develop CNPEG. TTFN, CTC