Rarebird, I would not argue that the economic landscape has changed but I would disagree with you on the valuation of "New Era" stocks.
Several examples will include EXDS and VRIO versus HWP or IBM in which case the later are bigger in server farm hosting services, not to mention the Baby Bells or AT&T.
In similar vein compare SUNW vs. IBM, HWP, CPQ as SUNW is number 3 in supply of servers but trades at a P/E over 100, vs 28 and 35 accordingly.
"Pure Play" is non sense and actually more risky as the company relies on one product line. On the other hand IBM is not only an hardware company, but the biggest E-Commerce Services, Network Servers and Server Farm company all in the "New Era" category with a P/E of 28
I would recommend to those "New Era " believers to read a refreshing piece of information who is still actual in our days.
bible.gospelcom.net
All things are wearisome, more than one can say. The eye never has enough of seeing, nor the ear its fill of hearing.
What has been will be again, what has been done will be done again; there is nothing new under the sun.
Is there anything of which one can say, "Look! This is something new"? It was here already, long ago; it was here before our time.
Oh yes the NEW ERA of justifications for stock valuation
There is no remembrance of men of old, and even those who are yet to come will not be remembered by those who follow.........
I have seen all the things that are done under the sun; all of them are meaningless, a chasing after the wind.
What is twisted cannot be straightened; what is lacking cannot be counted................. like real corporate earnings
Then I applied myself to the understanding of wisdom, and also of madness and folly, but I learned that this, too, is a chasing after the wind.
For with much wisdom comes much sorrow; the more knowledge, the more grief.
No wonder the bears are on the loosing side for now.
I only marvel at the great wisdom of this men so many years ago.
BWDIK
Haim
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