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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: d_trader_99 who wrote (33813)10/26/2000 9:52:23 AM
From: EJhonsa  Read Replies (1) of 54805
 
NT's PE is over 100. The haircut cannot be avoid.

Actually, Nortel's trailing P/E is now around 60. Hardly unreasonable for a company growing as fast as they are, especially considering that, going forward, optical-related sales should grow as a % of their overall revenues.

Also, although I agree that valuation always matters significantly, I hardly think that the PEG is the best method of valuing high-growth companies. Here's a post I wrote on the subject a while ago:

Message 14172872

Eric
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