UBID - an IPO spinoff of Creative Computers Message Board

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Technology Stocks : UBID - an IPO spinoff of Creative Computers

UBID 3.000

0.0%

Jan 21 4:00 PM EST

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To: George Gotch who wrote (315)	12/29/1998 6:12:00 PM
From: Michael Page	Read Replies (1) of 581

Dear Mr. Gotcha, Your reccomendation of MSFT proves my point exactly. MSFT's P/E ratio is as of today's close 68.87. Now a tech stock is by nature a risky investment. This risk is obviously lessened by the fact that MSFT has such a dominant position in its markets, but nonetheless the market is effectively saying this companys earnings are going to grow quite considerably. Their latest EPS is $ 2.04 based on 2,493,567,000 shares outstanding. In keeping with my simpleton approach, let's do some simple math. In order to bring the company's P/E ratio down to a historically realistic level for a tech stock (say 20). Their EPS would have to increase 68.87/20 times, or 3.44. That would mean an EPS of $7.02. This is obviously not going to happen in the short term. My point is that this kind of analysis is virtually meaningless with all of this momentum buying in the market. You are no simpleton and know this all too well yourself. Based on your philosophy "if you are long you are wrong", Mr. Gotcha, I can only conclude that you are planning to short ubid. At this point you are taking a big risk with this strategy, because as the favourable uptick at today's close shows, UBID is going up again. Especially when compared to the hit that the other big boys took (AMZN, EBAY, etc.)

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