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To: Michael Bakunin who wrote (116338)	4/11/1999 9:29:00 PM
From: stockman_scott	Read Replies (1) \| Respond to of 176387

Michael: Your profile reveals the following... <<3/99: Took some put profits (INTC, MU) at the end of last month, but still bearish, still hold more cash than anything else.>> For a young investor in this great digital economy I'm sorry you are so bearish. IMHO, there are SO MANY outstanding companies to invest in. Yet, if you use traditional valuation metrics in this internet age, you will miss out on some great opportunities (like AOL, AWRE, CMGI, DELL, MSGI, etc...). The economy is very healthy and the trend can be your friend...the market is going MUCH higher in the next few years....buy and hold stock in GREAT companies and forget about the volatility along the way. Good Luck Investing. Regards, Scott

To: Michael Bakunin who wrote (116338)	4/11/1999 9:30:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Michael, I have no doubt that what you say is true. Clearly there has been a huge runup in a very few stocks. But that is beside the point at issue. The point I was raising was the inclusion of companies like this in the S&P500: quote.yahoo.com The negative earnings creates an over-estimate of the companies that do earn, and makes the P/E of the average artificially high. Clearly, CPQ is not trading on the basis of current earnings. It is trading (or should I say was trading) on the basis of perceived future earnings. The background that you may have missed is the calculation of CNPEG. This is a defect, and I don't know how to avoid it. TTFN, CTC