WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 172.26

-2.2%

3:59 PM EST

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To: Cary Salsberg who wrote (28049)	4/26/2005 8:43:08 PM
From: Dave	Read Replies (1) of 60323

Cary, RE: P/S I do somewhat endorse the P/S ratio for tech stocks especially when you want to buy "beaten down" tech. However, I believe a more robust metric is the EV/S or EV/R. Terminology aside, I believe EV or Enterprise Value is more robust since it takes into account all capital, i.e. Debt and Equity, invested in the company and subtracts cash. One noted value investor whose name escapes me at the present time believes in buying solid tech companies having an EV/R < .5. Of course, his "other" criteria is that the company has little debt and plenty of cash to ride out (so to speak) any downturn in the industry. Dave

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