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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 91.52+0.9%Nov 28 9:30 AM EST

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To: Jeff Maresh who wrote (1607)6/15/1997 1:25:00 PM
From: Larry Brew   of 14451
 
Jeff,
Being invested only since January in the market, there's plenty
beyond my understanding. One item you currently refer to is P/S.
I take this to be stock price / sales. If the number is greater than 1
it seems to me an indication of an overvalued stock. Less than 1
seems to indicate sales are outperforming the P/E which would make
it attractive to buy. Example: Microsoft P/S is somewhere around 12.
At 120/share times 12 gives a valuation of $1440.00. Personally I
believe it to be currently extremely overvalued at a P/E somewhere
around 50. I thought these type P/E's are what finally became the
demise of the Japanese markets. Of course bank fraud played a part
also. Can you fill me in to understanding this strategy? If to involved
my email is lbrew30461@aol.com Regards, Larry
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