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Strategies & Market Trends : Take the Money and Run

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To: gypsees who wrote (2138)6/7/2002 1:45:01 AM
From: Dave Gore  Read Replies (2) of 17639
 
Ahhh, that's the question. The answer is earnings have to catch up. Simple as that.

TER is supposed to earn 54 cents per share in 2003. If it can, that it is not as overpriced as it first appearns - if you want to look that far ahead. I don't.

As for AMAT, it is supposed to earn 78 cents per share in FY2003. If they can do that, no problem. The question as always is whether they and others will come through. Some stocks like ESST already have a low PE and are expecting to report strong growth, so fundamentally it should be a safer play.

I think the answer for me is the stick to CURRENT low PE stocks rather than ones that are relying on earnings in 2003.
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