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Technology Stocks : Applied Magnetics Corp
APM 1.050+1.9%Jan 6 2:04 PM EST

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To: Thomas George Warner who wrote (10393)11/18/1997 2:27:00 PM
From: Jadrew   of 12298
 
T.G.W. Analysis:

It might be useful to refain from stating everything you don't agree with is "erroneous" information. You might want to take a look at the prices and earnings of CYRX and AMD during INTC's introduction of the Pentium processor (1995). Guess what ? AMD and CYRX with their sales of 468's did pretty well until they didn't have a product to sell when the market was only buying pentiums (starting late 1995). Oh, but those prior earnings looked pretty good. Maybe, you also did some "fundamental" analysis on those stocks (mid-1995) and proclaimed how strong "fundamentally" they were. They produced some fairly horrible earnings and price declines while developing the K6 and 686, playing catchup.

Do you see a similarity ? As for higher P/E representing a stronger company fundamentally (ie ability to produce future earnings), would you like the formula for a earnings multiplier ?
1 / (k-g) : guess which parameter doesn't look very good for APM ?
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