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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Uncle Frank who wrote (43691)6/20/2001 4:26:32 PM
From: Seeker of Truth  Read Replies (1) of 54805
 
I'd like to embellish your good point that the P/E's and surely the P/DCFs have become much lower or else are meaningless. I remember in the days when there were few growth stocks, it was fashionable to buy cyclical stocks when they were losing money. Now according to any ratio, at that moment they were very to the tenth power overvalued. But in fact they swung around. Lately Bruce Brown has been making the point that tech stocks are also cyclical, as this minidepression has illustrated. So their valuation is terrible when measured by various ratios just now. Of course when a company's earnings have not yet revived, to pay something like a long term average value will be mistaken as the price must include the fact of bad current earnings.
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