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Technology Stocks : Emulex, What Prospects? -- Ignore unavailable to you. Want to Upgrade?

To: mwj6 who wrote (195)	11/8/1999 4:05:00 PM
From: The Ox	Respond to of 788

Thanks Matt. I was able to scalp 4 pts on my short today. I find these valuations too lofty to be a buyer. Using your numbers, EMLX is trading at 38.5 times sales. Even if they grow revenues at 100% per year, it will take them over 4 years to reach $1 billion in sales (using last qtr's rounded sales of 30MM, annualized to $150MM this year (300, 600, 1,200). I couldn't agree more that the FC stocks are super hot and that one should be very careful going against the Mo-Mo within this group. best regards, Michael

To: mwj6 who wrote (195)	12/5/1999 12:25:00 AM
From: Mark[ox5]	Read Replies (1) \| Respond to of 788

Actually your BRCD P/S ratio is incorrect. Yahoo has it wrong (it looks like that is what you used) BRCD P/S = 111 They had 68.7M in year revenue per last earnings report. Mkt cap currently 7.6 B I agree QLGC is best "value" (if you can use this word in this space) I also bought some puts for the very short term, as EMLX has not acted well the past 2 days in record NASDAQ days. Looking for lower $140s to sell them. I dont like buying puts on stocks that have such a tiny float and obscene valuations, because whats the difference between a Price to Sales of 60 or 80? Or a market cap of $4 B or $6 B. In other words if $150 why not $350? Most of these are trading on incredible growth rates (as they should) but the valuation question is useless as by all measures all of these are "overvalued". Anyhow, EMLX and QLGC are my 2 favorites, and on next NASDAQ correction will be going back to the long column. GOod luck