Pat,
It has finally sunk into my very thick skull that every high pe, high peg tech can, JUSTIFIABLY, be sold down to a cheap historical price for growth, which would be a peg of .5. This is brutal, for it suggests that although jdsu sold at 150, which gave it a peg of 2.0, it can now sell at a pe of 40, about 1/2 the growth rate, or a price of 32.
Now the good news is that if you have any equity left, God bless you and you have two huge things on your side. The peg's will double, and you will have tremendous earnings growth. The math says we get a lot of 10 baggers in 4 years off of wherever the bottom is, on a company with 50% compounding growth, and a peg of .5.
So, where is the bottom?
Someday.
As far as Dell and LU, well, imho, dell has run up so much that it is way too expensive, and who knows what LU was doing with their books? |
