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To: OldAIMGuy who wrote (8349)	8/30/1999 7:40:00 AM
From: JZGalt	Read Replies (2) of 18928

Tom, They look pretty confused up with that analysis. Anything I might say would just confuse the issue further. The thing that struck me is the use of price/sales as a valuation tool. I just had to smile because I am forever trying to convince my cohorts at Confirmatory Analysis.com that this is NOT a way to value growth companies, but a good way to value cyclical companies. Different meanings to the numbers depending on type of company. One of the failures at CA.com has been to select higher flyers based on p/sales ratio and we haven't done that well this year comparitively. FWIW, JBL should be valued based on earnings projections and not looking in the rear view mirror of current and past numbers. The formula is: 12 month forward earnings X 5 year growth rate = "fair value" No need to get complicated. ---- Dave

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