Here's another p*sser from Briefing.com's prognostication for Monday:
There's a feeling among many investors that the worst is behind us. Mutual fund tax selling is over; the bad earnings news is largely behind us; and the leadership issues finally succumbed to some overdue selling, thereby restoring value to the group. While we agree with the general line of thinking, we doubt that the selling is over - especially for the momentum favorites such as Applied Micro Circuits (AMCC 141 3/8), JDS/Uniphase (JDSU 77 1/4), Siebel Systems (SEBL 103 15/16), Ciena (CIEN 104 3/8), Sun Microsystems (SUNW 103 3/16), Network Appliance (NTAP 123), Brocade (BRCD 226 1/2), Extreme (EXTR 75 3/4), Juniper (JNPR 181), Newport (NEWP 117 1/4), PMC-Sierra (PMCS 165 7/16), etc.
"etc.", Bob Walberg says.
Here is how the P/E's for that list of "momentum favorites" stacks up:
JDSU -37
SUNW 84
NEWP 200
AMCC 307
EXTR 421
PMCS 437
CIEN 514
SEBL 558
BRCD 617
NTAP 657
JNPR 704
So along with one money-loser, the next stock has a P/E 2.5 times SUNW's and then they go up into the stratosphere. You could obviously come up with all sorts of other similar tables (like, for a trivial example, earnings and revenue) showing that SUNW qualifies as a "momentum favorite" in this bunch about as much as the man in the moon.
No plant for Christmas this year for you Bob Walberg. You'd smoke it all before Santa got back up the chimney.
--QS |
