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Strategies & Market Trends : Market Gems-Trading Strong Earnings Growth and Momentum

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To: SOROS who wrote (790)1/7/2001 5:05:27 PM
From: iod_sherwood  Read Replies (1) of 6445
 
please help me define uh... "reasonably"

ACTU - 231 pe, 11 ps (note these are all ttm numbers, not fiscal yrs)

some on your list, the small caps namely are ok.

AMCC is pricey, 60x sales????
AUTN almost 60x sales???
BRCD 60x sales.

i'm being very lenient... i figure 15x sales is a rich viable valuation for the time being... t'is why u can still short a lot of the frothy stocks quite convincingly

even then... you're basically saying that if the company did 15 years of business at the rate it did in the last twelve months, it will have brought in REVENUES equal to it's marketcap... not too effective if you ask me...

anyhow... here's a take from WSJ

public.wsj.com

Stock Valuations Raise
Questions About Future
By Ken Brown, Scott Thurm and Deborah Solomon
Staff Reporters of The Wall Street Journal

If you had spent all of 2000 living in a yurt on the plains of central Asia and on your return looked at the valuations in today's stock market, you would probably find it hard to believe that stocks had just finished one of their worst years ever.
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