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Strategies & Market Trends : The New Economy and its Winners

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To: Robert Rose who wrote (328)5/19/2000 1:34:00 PM
From: 16yearcycle  Read Replies (1) of 57684
 
RR,

"Using New Economy metrics, a 2 peg for csco would yield a pe of only 70-100, 50%-30% below today's csco stock price"

Csco is expected to earn .15 this quarter, and they always beat by .01. Let's use the .15 anyway and we get that csco is at a .60 run rate on present earnings. 52/.60 = a pe of 86. This gives csco a peg of 2 right now.

As far as the market being nervous, it has always seemed to me that all short trem moves are related to trading based on ta. Csco broke to new lows so it's chart looks worse to a ta guy. To an investor with a multi year horizon, the lower prices make it more, not less attractive.
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