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Technology Stocks : Ciena (CIEN)
CIEN 214.35+0.7%Dec 9 4:00 PM EST

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To: Sam Citron who wrote (1284)2/20/1998 1:29:00 PM
From: craig crawford  Read Replies (1) of 12623
 
<< I hate to belabor this but PSR is a more important metric than PE. CIEN's PSR is about 14, compared to about 2.5 for LU >>

CIEN's PSR used to be 14 but it's 10 now.

<< Sales are much more difficult to manipulate than earnings. >>

Precisely! LU sales aren't growing all that fast! CIEN's sales are growing quite fast. LU has had impressive earnings gains due to cost-cutting and layoffs and other gizmos while CIEN has driven earnings growth by growing sales and hiring more people.

Two different styles I guess. I know you don't want to hear it over and over again but my argument still stands. Sticking to low PSR ratios would keep you out of greats like MSFT, C$CO, and TLAB. COMS is an example of a company that has a low PSR and they are going lower.

No method is totally perfect.
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