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.
Strategies & Market Trends : MDA - Market Direction Analysis
SPY 660.19-0.8%Nov 18 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: iod_sherwood who wrote (69462)2/18/2001 12:29:17 PM
From: waverider  Read Replies (2) of 99985
 
OK your valuation perspective is valid. But we both know that the market has always paid up for growth and will continue to do so, bear or bull. I venture to say that most of the investment community is not interested in common stocks as dividend paying vehicles. There are much better instruments for that in terms of income. Hard to beat tax free bonds.

With the still projected EPS of JDSU of .97 for the next year ('02) (assuming it holds) we are are talking about a PE of 36. The 100 PE you mention is rear view mirror stuff. The market cares little for that. So based on current estimates you are paying 36x a 35% grower. Not a bad valuation at this point.

We could argue that JDSU is not going to meet those estimates at this time and I would grant you that there may be some slipage, but we don't know that yet. We also don't know what the economy is going to be like 6 months out. Based on what we know about the world's desire for technology, it would consider a good bet here would be to start accumulating JDSU.

Getting back to Ford or GM or any other big manufacturer you care to pick...their stock prices have basically gone no where forever when compared to growth companies. Yes, if you were to sell the assets now, you might have a point in terms of hard cash...but the market is a place of dreams and dreaming about auto growth just doesn't cut it.

Rick
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