Bosco & Crossy's stock picks,talk area Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Bosco & Crossy's stock picks,talk area

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Carl Worth who wrote (4067)	9/22/2003 10:15:01 PM
From: Patentlawmeister	Read Replies (3) of 37387

Since Mike hasn't responded to the bullish argument, i'll chime in with a "what about the current 'forward' p/e of 40 for the Nasdaq 100" (not sure if it's the overall Nas composite that has this p/e)?? Isn't that a tad bit pricey? Once upon a time there was the so-called nifty 50, some of which had astronomical p/e's of 50 or higher. Now 50 is about an avg. p/e for these big tech companies. And that doesn't include the dilution that these companies constantly create year after year with their shenanegans. Nor does it include the occasional "non-recurring" write-downs - what's a few billion in write-offs (a la Cisco) between friends anyway? Now, a p/e of 40 translates to a paltry yearly return of 2.5%, a helluvalot lower than safe T-bills. So what if the historical p/e's of stocks is on the order of 12? 40 is not that much higher than 12, i suppose. But if the mkt. would go back to the old fashioned 12, yes, that would put the Nasdaq at around 500.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next