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Politics : Idea Of The Day

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To: SecularBull who wrote (31988)6/21/2000 6:57:00 PM
From: IQBAL LATIF  Read Replies (3) of 50167
 
Money is coming in your direction hopefully soon, some of it might find my direction too...gg

PEG of the tech and telecommunication sector of the S&P 500 is around 1.6, it is according to BW a far cry from its highs of 2.7 in April of 1998. A lot of damage is already built in this sector and probably according to pundits coming to an end. PEG is a better way to look at the companies than the P/E's. PEG is obtained by P-e divided by the estimated annual earnings over the next 5 years. It is important for you to get good solid strong growth at a reasonable price.. PEG under 1.5 are considered cheap like C AMAT at 1.29 GTE \UNH or TX (BW), now adays S&P 500 PEG ratio is at its lows rather lowest level since late 1997 and nearly 35% lower than the all time high of 2 in Jan 1999. Telecommunications had traded in good times at a 10% premium to the market now they are at par with S&P.

PEG alone indicates some good coming your way and my way too, PEG shows that many new economy companies because of their strong PEGS are better buys than old economy companies..

BW quotes an example of EMC, this company has a forward P/E of 41 V/S KO 33 but EMC is expected to grow at 31% annual growth rate over next five years and the KO only at 13%. Now EMC's PEG ratio is a mere 1.4 to KO 2.5.

I think BTY TI VOD are oversold and will come back soon, I expect soo, this is mainly from an article I read in BW of 26th of june European edition, I was searching for it could not find it to cut and paste, but what little I had retained is forwarded with best of regards and hope you keep enjoying this thread..I try to answer queries with the little I know you got to search for more info..
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