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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Paxb2u who wrote (19902)	7/11/1999 8:53:00 PM
From: Les H	Respond to of 99985

I believe it's the rate of change and not the absolute level of earnings. There are plenty of earnings momentum stocks out there today and in the past for which you could've raised the same concern. Many people calculate the PEG using the current or next year's projected earnings growth in deciding how 'fairly valued the stock is'. Given the earnings recovery in the market for this year, the PEG would actually be much lower for the market this year versus last. Somewhere later down the line, perhaps next year or later, the earnings recovery will be over and the overvaluation will be an issue once again if not sooner. Any thoughts? BTW, it was neat how GM's stock buyback was floated in the media just days before they got hit with the biggest lawsuit award in history.