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Technology Stocks : Systemsoft Inc. (SYSF)

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To: Paul Mathis who wrote (2616)11/26/1997 2:27:00 PM
From: David R. Lehenky  Read Replies (1) of 3529
 
Given that trailing PEs are virtually worthless as a measure
of stock value, I'm not sure how to respond. This is especially
true of high-growth companies. The price of a stock reflects
the future expectations for earnings. You might want to read
through Allen Benn's posts on the WIND thread to understand why
WIND is currently underpriced, even though the trailing PE is
high, by your standards (it has been as high as 100 as recently
as July). There aren't too many companies that deliver 45%+ in
revenue growth, year after year, and at the same time improve
the net margins (ie earnings are growing faster than revenue).

Sorry for the off-topic discussion.

-Dave Lehenky
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