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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: Wally Mastroly who wrote (9430)	10/22/1999 12:17:00 PM
From: Allan Harris	Read Replies (1) of 15132

Are tech stocks actually undervalued? redherring.com Excerpt: To take a macro-market view of the phenomenon, the average P/E ratio for the tech sector right now is a stout 40 times earnings. Yet if you factor in an average earnings growth of 20 percent per year, there's a 2:1 ratio; not bad. Now take the S&P 500, where the average P/E is 28; earnings growth is only 7 percent, however, which yields a ratio of 4:1. Suddenly, tech isn't so expensive after all. If you're a long-term investor with deep pockets -- and no machismo complex that demands to know the next hot billboard stock -- investing long-term in companies with high earnings growth potential suddenly seems like a decent bet. A

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