Archived posting to the Leica Users Group, 1999/01/18
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"Kotsinadelis, Peter (Peter)" <peterk@lucent.com> wrote:
>Except if you bough MS Stock 2 years ago you would have more than
>doubled your money.
One year ago, actually.
12 months ago, MSFT was at ~$60/share. Now it's at ~150.
12 months ago, Apple was at $15. now it's over 40.
The difference:
MSFT P/E: 74
Apple P/E: 20
Go ahead and invest in MSFT, but prey to Greenspan that interest rates
stay low, because that stock price makes assumptions about both future
MSFT revenue growth and interest rates. If either of those assumptions
proves false, with a P/E that high a lot of investors will take it in
the shorts. Apple has few directions to go other than up.
..........................................................................
Alexey Merz | URL: http://www.webcom.com/alexey | email: alexey@webcom.com
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