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Technology Stocks : All About Sun Microsystems

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To: Lynn who wrote (30463)4/11/2000 10:48:00 AM
From: techtonicbull   of 64865
 
Lynn: Whisper numbers have grown in direct proportion to PE ratios. As a company's stock price swells to multiples of earnings that exceeds 100X, there needs to be higher earnings acceleration to support such PE's.

A company is held to a higher standard if the PE's have been high, thus the "whisper number" which are expectation wishes.

I believe in the efficient market theory which states that stock prices are determined by fundamentals in the end, i.e. what are the real earnings, not what upside surprise are we going to get. The most important factor is after the numbers are released, what is the company's "guidance" for the future?

Lynn, I think that Millunovich is very sharp too.
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