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Politics : Formerly About Applied Materials
AMAT 322.31-5.6%Jan 30 3:59 PM EST

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To: Proud_Infidel who wrote (36255)8/4/2000 6:17:25 PM
From: DK  Read Replies (1) of 70976
 
PE ratio is irrevelant as the investor sentiment
is negative, a P.E of 20,10, 5 does not mean
anything... If I don't want something, then it
does not matter how cheap it is..I am sure there
are other buyers and I don't care...
Same applies when the investor sentiment is postive
investors will pay a even a P.E of 30, 40, 50 or 100..
like when internet or B2B tock frenzyness that was
going on..
P.E Matters the most when your objective is to keep
a stock atleast five years or longer and look at the
average return vs average growth.. If currently
you believe you are buying AMAT for a P.E of 25 and
forecasted growth is over 30% for next 3 to 5 years
than it makes sense to buy the stock and forget about
for 5 years, and believe me you will be rewarded 25 to 30%
average rate of return, but if u are targetting 6 months..
1 year - there is no guarantee, it etc.. P.E does
not make sense, current investor sentiment, speculation..
trend these things make more sense, I still believe
you maitain AMAT for next five years you will be well
rewarded.. these stocks tend to go up 200-300% pull
back for year or 2 and then go back high again...
Good luck
DK
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