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Hey, Growthvalue, we are kind of getting down to "how many angels can dance on a pin", but yeah, a gorilla should trade at a 50% premium to a chimp. Get Moore's book, "The Gorilla game", best thing I have ever read on tech stocks. Intel is trading at about a 28PE because it is getting to be an old gorilla and its growth has slowed. Its totally fair, in my opinion, to compare SAP to MSFT and Cisco, they are both leaders at roughly the same time in their cycle, and comparable growth. No yardsticks are perfect, but I think the major funds look at it the same way I do, and believe that SAP is ahead of itself. When you look at the last 18 months of increase in SAP's price, You can see why the big boys have stayed out,especially in this market. I had hoped that the US Market would pile on, but it does not look like it will. With a forward PE of 70, I will hold, but not buy for the present. If I see a surge, I trade in and out, on top of my base holding. |
