your response shows that like most bears, you're too emotional about matters to make intelligent decisions about investments. While you keepwaiting for "blood in the streets", there is money to be made.
Book Value became obsolescent before the 286 computer chip did. It has no meaning anymore. What is important is that there is now commercial demand for CPQ, IBM, INTC, and MSFT products and this will continue for years to come. So, in any downturn in consumer spending, corporate purchases will offset.
Take Intel for sinatnce, '97 EPS est. range from $7.20-$8.00. With a conservative PE ratio of 20 (not bad for a company whose growth rate is 25%-35% and whose profit margins are close to 60%), you get a 1997 stock target price of 144-166. Further, you have the anticipated stock split, earnings surprises to the upside all of the time, and a book to bill ratio expected out next week that will blow the socks off of all. The only way you'll see INtel much lower than it is now is when they split and the stock is halved in price..
In the meantime, I will drink my budweiser and enjoy the ride because the end is not coming for quite some time. |
