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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: Jenna who wrote (118455)12/7/2000 4:45:42 PM
From: Jenna  Read Replies (3) of 120523
 
PDLI, PDII and NTIQ.. 3 peas in the pod. short bait for tomorrow. another high P/E.. in this group. PDII moved from a high of 139 yesterday to a low of 106 in just 2 sessions. They go down as quickly as they go up. These are not your 2 point scalp short trades, but precision and patience and they could be called "NUAN - Revisited".. and what is PDII detailing exactly? in a lucrative business service sector their earnings growth is a meager 46% well below the average for the sub industry.

PAYX in the same sub industry has a Return on Equity of 53.7% and Profit per Employee of $30,646 and Cash Flow Margins of 29.4%

PDII has a Return on Equity of 16.6% and Cashe Flow Margins of 6.9% and Profit per Employee of $4,239

Earnings Per Share 2001 for NTIQ
Q1a $0.16 vs. $0.04 300.0%
Q2e $0.17 vs. $0.09 88.9%
Q3e $0.20 vs. $0.14 42.9%

Nothing against any of these fine companies, but in this market environment with companies tottering and problems of earnings growth, high valuations, impossible earnings targets, how can they escape the battering ram?

marketgems.com
If SAPE is growing its EPS at the rate of at 61.8%
and NTIQ at 68.6% why is SAPE trading at 13 5/16 with a P/E multiple of 36.98 and NTIQ trading at 95 with a P/E multiple of 164? And if SAPE is expected to earn $0.13 and NTIQ $0.16 why should a big disparity in the stock price?
"AKAM" is another winner from this sub-sector.

ROS (Return on Sales) : (114.9%)
Divisional Margins : (108.8%) !!!!!!!
Cash Flow Margins : 21.9%
ROA (Return on Assets) : (3.2%)
ROE (Return on Equity) : (3.3%)
Profit per Employee : ($102,884) they can't even pay their employees with their own profits.
Earnings Growth : 4.3%

Disclosure I am holding some NTIQ puts but I said I would be.. no big secret here and have been long PAYX for years. I have no position in PDII or PDLI.
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