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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Wyätt Gwyön who wrote (48881)	11/14/2001 10:09:32 AM
From: slacker711	Read Replies (2) of 54805

the PSR is an important ratio for this purpose (as you can't give a PE to negative earnings), so the fact that MU has a PSR close to 9 times what it did in 1990 seems far from irrelevant (even though MU is not a gorilla-type stock). I just did a quick scan of MU using Yahoo.... biz.yahoo.com It looks like they expect $500 million of revenue in the current quarter....and they have a market cap of $17 Billion. So they have a PSR of about 8.5. It seems outrageous, in light of the fact, that they had a PSR of 1 in 1990. It seems that you are implying a correct valuation for Micron would be about 3.35 Of course, the part of the equation that is left out, is the fact that MU is predicted to earn $1.42 in '03. The valuation which you seem to want on Micron would allow you to buy it at 2.4x earnings that are only two years out. Slacker

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