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To: rupert1 who wrote (53223)3/13/1999 10:12:00 AM
From: rupert1  Respond to of 97611
 
A Barrons article that discusses
the p/e of the "Nifty Fifty"
including CPQ. It is backward
-looking based
on CPQ's p/e 66 for 1998.
But that was a year of
negligible net profits.
CPQ forward p/e now is 17

_________________________

March 15, 1999

The New Nifties

Will today's Nifty Fifty prove
to be worth their high P/Es?
One lesson from the 1972 crop:
technology leaders have trouble
maintaining their edge over the
long haul.

COMPANY Recent Price p/e
Microsoft 160 11/16 70.2
General Electric 105 7/8 37.8
Wal-Mart 94 47.5
Intel 118 1/16 33.4
Merck 82 5/16 38.3
Pfizer 139 1/2 69.8
IBM 181 9/16 27.6
Cisco Systems 103 11/16 78.6
Coca-Cola 63 1/8 45.1
AT&T 83 13/16 24.3
MCI Worldcom 84 5/8 126.3
AIG 119 5/16 34.1
Citigroup 63 1/2 23.9
Lucent 107 1/4 55.9
Bristol-Myers 62 13/16 35.1
Proctor & Gamble 92 1/4 34.2
Johnson & Johnson 86 7/8 32.5
Dell 43 5/8 82.3
Eli Lilly 91 5/8 47.5
Home Depot 64 7/16 60.8
BellSouth 46 28.0
America Online 91 11/16 353.0
Time Warner 69 1/4 NM
Schering-Plough 56 7/8 47.6
American Home P 61 11/16 34.6
Abbott Labs 49 9/16 32.8
Fannie Mae 72 7/8 22.3
Walt Disney 34 1/2 45.4
Gillette 58 3/4 47.0
Warner-Lambert 70 3/4 47.8
McDonald's 43 1/4 34.4
EMC 112 5/8 75.6
Morgan Stanley 99 3/16 20.0
Pepsico 38 1/8 29.1
Compaq 31 5/16 66.6
Oracle 37 1/2 50.7
American Express 118 3/8 24.9
AirTouch Comms 92 1/16 86.0
Tyco Int. 74 1/4 33.8
Medtronic 70 9/16 48.0
Sun Microsystems 109 1/8 43.8
Gap 69 5/16 50.6
Sprint 88 3/4 25.7
Xerox 55 3/4 23.9
Amgen 68 1/2 41.8
Charles Schwab 80 5/16 94.5
Associates 1st 44 1/4 25.3
Viacom 89 3/8 NM
Dayton Hudson 70 1/8 34.0
Walgreen 30 1/16 55.7

*based on earnings for the latest 12 months



To: rupert1 who wrote (53223)3/13/1999 1:10:00 PM
From: yard_man  Respond to of 97611
 
Guy's style worked well when mo-mo ruled, buying all the high priced names now might not be such a good trick ... he probably won't be as confused in 3 - 4 more weeks <ng>