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Technology Stocks : LSI Corporation

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To: uu who wrote (8836)1/6/1998 9:17:00 PM
From: sea_biscuit   of 25814
 
I think the story is going to repeat over and over again during Q1 98. And tech companies are particularly vulnerable, for they usually trade at P/E levels of 40 or higher. If earnings come down by 20%, the P/Es can easily go down to 20. That means, the "P" part of the P/E would decline by 60%! Well, if it is any comfort, it is that LSI has already come down by more than 50% from its summer highs!

For those who have been spoiled rotten during this phenomenal bull-market, these things might come as a surprise. But this could also be a valuable lesson. It all depends on how one takes it...

Dipy.
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