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Strategies & Market Trends : Tech Stock Options

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To: Barbara Barry who wrote (42604)5/7/1998 8:44:00 PM
From: Dwight E. Karlsen  Read Replies (1) of 58727
 
To any who is interested: On about April 24th I decided to get into the internals of the MSH high-tech 35 index. I wrote down the ttm PE of each stock, using the number given by Yahoo Finance site. It was interesting. Here is what was revealed:

- Of all 35 stocks in the index, the mean avg was a p/e of 102.3.

- Yahoo Finance had three stocks with no ttm (trailing twelve month) earnings: BAY, NSCP, and SEG.

- three stocks had minimal earnings, resulting in P/Es of the following:
AOL - pe of 573
INTU - pe of 259
YHOO - pe of 1,229

- I subtracted these the three highest pe stocks then, leaving 32 high-tech companies in wide-ranging endeavors; the creme of the crop so to speak, and recalculated the pe. I included in the 32 cos. those three that had no earnings and no pe. The mean pe came out to 47.5, for what it's worth.

Note: AOL has since reported the latest quarter's earnings, possibly other cos. have reported since Apr. 24th also.

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