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To: Ed Forrest who wrote (18678)	5/26/1999 1:34:00 PM
From: Steeny	Read Replies (1) \| Respond to of 41369

All these IPOs have not helped, but that has not been the crux of the problem. The real issue is the high PE of all internet stocks. IMO major investors and funds found it hard to justify the Inet PEs so far above other massive growth industries like computer and software makers(read MSFT and DELL). Even with 50% growth, INETs were perceieved to be too far above the other techs(20-30%growth). I believe the funds are in the process of finding some system to value Inets. My guess is they will peg them with PEs of 2-3 times MSFT and DELL. This I do NOT KNOW. I am just guessing where they will be pegged. It makes sense to me and leaves a lot of room for downside.