SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Nokia (NOK)
NOK 6.910+0.9%3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mark Marcellus who wrote (9240)2/16/2001 1:54:02 AM
From: tero kuittinen  Read Replies (2) of 34857
 
There's no way to ever understand this business well enough to forecast two years ahead. I'd be delirious about visibility over six months. So the P/E problem is pretty much unsolvable. It's going to depend on sentiment, no matter how you slice it. As soon as we get a handle on GPRS or 1XRTT success there's a question over 3G demand.

But I seriously doubt that it's any easier for most other sectors either - like the pharmaceutical industry, which is now priced to forecast 30%-plus earnings growth well into future. Technological advance cuts both ways - making copycat drugs that circumvent patent protection is about to become easier than ever.

And I do disagree about Coke and other consumer staples with pricey shares. I don't think we can forecast demand for carbonated cola beverages into decades ahead and Coke hasn't done well in addressing the soaring juice and still water demand. They haven't shown that the brand extends beyond that one core item. It's a faith stock even more than some tech companies - there's nothing conservative about it.

If we don't get a 70's kind of P/E crunch and you can pick up this stuff for P/E ratios around 10, this anguish is here to stay. Can't say I wish you luck, because I don't!

Tero
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News