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Technology Stocks : Western Digital (WDC)
WDC 157.75+1.5%Nov 26 3:59 PM EST

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To: Thomas George Warner who wrote (7808)11/23/1997 7:19:00 PM
From: Brian Lempel  Read Replies (1) of 11057
 
You are wrong regarding p/e ratios. Christopher had a good point about the expansion and contractions of them.

The p/e is low now because the future looks bad, but trailing earnings were good. A year from now, the p/e will be high (relatively speaking) because TTM earnings will be low, but future prospects will be looking good.

That is why $15 is a ridiculously low target and will only be met if there are prolonged pricing pressures.

Brian
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