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Technology Stocks : Small Cap Stocks -- a huge future ahead?

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To: MJR who wrote (6)7/3/1998 7:38:00 PM
From: Brad Rogers   of 18
 
On CNBC today (friday) there was a replay of a "Morningstar" mutual fund manager conference. Excellent.

The theme, heard over and over again, was that small caps were the at the cheapest valuation in 7-10 years. One guy said he could easily construct a portfolio with a 100% forward EPS growth rate and 15 pe (perhaps a stretch).

But over and over again, you did hear them say that small caps were selling at PE's half of their growth rates, and that big blue chips were selling at PE's twice their growth rates. At some point, something has to correct.
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