Semi Equipment Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi Equipment Analysis

SOXX 306.28

-1.0%

Dec 4 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Return to Sender who wrote (6375)	10/22/2002 12:33:21 AM
From: The Ox	Read Replies (1) of 95525

I'm not a big fan of taking a past market based statistic (specifically, I'm down on using the market's past P/Es) and extrapolating how our current market's either over valued or under valued. There are too many factors which differ from period to period. Interest rates, money flows, GDP, unemployment, taxes, tariffs, commodity pricing and overall costs of goods are just a few of the factors that come into play when looking at how today's P/E should be compared to those of previous markets, imo. We should be very cautious about using P/Es as a gauge for the present (or future). P/Es easily fluctuate and they may not give us an accurate indication of current or future value. Here's just one of many examples which help to illustrate this point. R+D reduces earnings but doesn't seem to have any place in the discussion when P/Es are mentioned. Some companies have very low earnings during tough times because they are pouring money into their R+D departments. Future prospects might be huge, but the company's P/E may or may not reflect the market's ability to put a "fair" value on that future.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next