Hi John, I would agree that 32.5 for RNWK, or 64 for ARBA is mind boggling, but not in the way you mean. If those companies were cut in half AGAIN from here, they would still be overvalued. I am very pro tech, and my current shopping list is all tech, but these valuations are ridiculous, and that is why the NAZ is correcting so much. I've heard people say for example that "RNWK has earnings, it's not like those other companies". Their PE is 1325 ! If they grow earnings at their expected 33% rate, then in something like 5 years their PE might catch up to their stock price. ARBA is no different. They may be a great company and grow their business as fast as the projections, (something I'm not certain they can do) but even IF they do, we will be close to the next decade before their PE gets down to realistic levels. I don't mean to be a basher, but it is facts like that, that are driving these prices down. I would talk more about sales to revenue figures if I had more facts at my fingertips, but off teh top of my head I seem to remember a rule of thumb from business 101 class that a company should sell for 5 times current sales, maybe 5 or 6 times future sales if it is a fast grower. (I could be off some on those figures, but I think you get my point.) Jeff
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