Bambs,
In all due respect - you (and most bears) keep hammering on the PE issue. The reason PE's in the tech area are higher than other sectors are because earning growth rates are far FAR higher than other sectors (I'm speaking about the winning tech companies - not all the .coms which overinflate the NAZ PE). If company A is earning x, and company b is earning 2 times x, the company B should have a much higher PE - some would argue twice as high. If the retail sector has a PE of 20 then good techs should have a PE of between 60-80... and really great techs with market share leadership, vision, execution, and new potential market should perhaps be worth more. You look at historical PE without regard for growth. And I'm not talking about analysts expectations of .69 next year... I'm talking fundamentals... target markets, target market size, consumer demand, market share expectations, execution, and other perhaps less intangible factors. Those in the industry feel it... and THAT is the reason companines like JNPR, SCMR, CSCO, ORCL, EMC, and many many others have relatively high PE's and why their deserved.
OG |
