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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: yard_man who wrote (16091)2/5/2003 2:38:59 PM
From: Lizzie Tudor  Read Replies (4) of 19219
 
Here it is believed that an earnings recovery is "around the corner" to the extent that some clowns will pay huge multiples for a biz that is not growing -- i.e. CSCO.

Not to get into anything long winded here... but you do realize that Cisco's earnings were up 50%, no? That fits the definition of an "earnings recovery" doesn't it?

Top line growth was nonexistant, but what is your real issue with indices, that P/E ratios are too high or that there is no growth. I'm getting a mixed message, at first it seems like P/E is your main concern... then you switch to growth.

A few more companies up their E by 50% and its going to fix those ratios right up. There has been so much consolidation in the industry I can't see how that won't happen.
Lizzie
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