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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: wily who wrote (32503)	10/21/1999 5:36:00 PM
From: visionthing	Read Replies (1) \| Respond to of 93625

PEG ratio is a commonly used indicator in our new market economy. While it is a slightly riskier indicator, it is a greater growth indicator than some of the more traditional indices. This figure is calculated on forward P/E divided by expected annual growth rate. Rambus forward P/E = 77.6 annual growth = 75% PEG ratio = 1.03 anything around 1.0 would be considered excellent buying opportunity. I personally like this method, but it's not for everyone*:^) VT

To: wily who wrote (32503)	10/21/1999 5:46:00 PM
From: Mohamed Saba	Read Replies (2) \| Respond to of 93625

Wily, you are tiring me. Forget all about book value and any other figures derived from it. ROE is earnings divided by book value. Book value figures, and other figures that depend on them, are worthless for fast growing companies. They are the name of the game for asset based companies, though, like utilities or railroads, I think. Don't worry about book value or ROE when it comes to RMBS, INTC, MSFT, and the like. While your average happened to be close to one, if you plot one against the other you will find no correlation. Mohamed