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Technology Stocks : Semi Equipment Analysis

SOXX 296.74

+1.8%

Nov 28 4:00 PM EST

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To: zonder who wrote (7283)	11/28/2002 10:52:26 AM
From: Kirk ©	Read Replies (1) of 95487

I just don't see where growth is going to come from. Growth so high, moreover, to justify a 140-something P/E. IF P/E were that high on earnings of $1 or so, then you might have a case but if the P/E is high due to low revenue and low but positive earnings (like a few cents), then I'd look at what would happen to the P/E if the company booked an incremental 10% in revenue. If that only led to a 10% decline in PE, then I'd say it was over valued. But if that 10% incremental revenue tripled earnings.... then you start to look at what would happen with higher increments of earnings. Here are two good articles on P/E: suite101.com "The PE Myth" and "Flaws in the forecasts; Researchers say p/e, dividend yield make poor prognosticators " To everyone Happy Thanksgiving! Kirk

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