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 : Texas Instruments - Good buy now or should we wait?
TXN 195.99+1.4%2:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: John Chen who wrote (5498)2/25/2001 2:58:51 PM
From: Maher Sid-Ahmed  Read Replies (4) of 6180
 
Look at the P/E of some of the old economy stocks:
1. Washington Post P/E=43.
2. Berkshire Hathaway BRK/A P/E=46
3. Disney DIS P/E=51.

P/E by itself cannot give you a measure of share price. Other indicators: PEG, P/S, cash flow, debt/equity, current ratio, etc.

I think that most technology stocks are way oversold, including TXN.
TXN has a P/E of 18, P/S of 5, $4 billion in cash, a current ration of 3 (which is excellent), a market cap that is far below its pears, and a technology that cannot be easily duplicated. IMO TXN can easily go to $100 and still be reasonably priced. Benjamin Graham said something to the effect that one should buy when the market is in a depressive manic mood and sell when Mr.Market becomes euphoric. Mr.Market is in a really depressive manic mood. So IMO it is time to buy.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext