re: What kind of P/S or PE are you attributing to them and why?
Investors have not been using PE ratios to decide when to buy stocks like JDSU, for years. Investors forgot what a P/S ratio is, and how you use it, years before that. You are speaking a language investors are just beginning to re-learn. Because they don't understand it, they ridicule it.
And, yes, many investors have forgotten that a certain stock price implies other numbers (market cap, sales, margins, etc.). And if those other numbers are unreasonable, then the stock price isn't going to happen.
A glance at the stock price tells that the stock is now at a small fraction of its 2000 high. That is enough DD for many to conclude that it is now undervalued. This thinking is what creates bear rallies.
BTW, do you think EMC is now a decent value at 20? Or do you still not like the industry, so it isn't on your buy-list no matter how low it goes? |
