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Politics : High Tolerance Plasticity

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To: jim_p who wrote (166)	2/23/2001 12:55:42 PM
From: The Ox	Read Replies (2) of 23153

This type of market reaction appears to mirror what happened to the disk drive sector a few years ago. Based on forward earnings estimates (at that time), all the stocks in that sector were screaming buys. After a few months, it became clear that the future was much more turbulent for those companies (the likes of WDC, APM, RDRT, etc.) The PEGs were meaningless back then or maybe it should be stated that the estimates were those of analysts who were seeing the future but were calculating expected results based upon past performance, not based on what the new horizon had in store for this sector. Look how fast NT, CSCO and SUNW went from 70% growth to 10% expectations. Just something to consider when looking at forward PEs. I doubt the future will be as negative for ISSI as it was for the disk drive group but right now the "future is cloudy" at best.

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