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To: David Montgomery who wrote (7415)12/17/1999 7:55:00 PM
From: Mike Buckley  Read Replies (1) | Respond to of 9068
 
David,

Would appreciate any thoughts on the "PEG" ratio analysis.

That ratio is wrong. :)

I don't have the slightest idea how anyone could come up with a PEG ratio as low as 1.5. Using a ratio in which the growth component is the period beginning with trailing earnings (excluding one-time charges) and ending with 2000 earnings, the ratio is 3.3. Using a ratio in which the growth component is five-year estimates, the ratio is 2.5.

--Mike Buckley



To: David Montgomery who wrote (7415)12/17/1999 11:10:00 PM
From: Riskmgmt  Read Replies (1) | Respond to of 9068
 
Hi David:
I see that Mike has answered your Peg ratio question.

I decided to sell some covered calls and buy some puts. I did this on only a portion of my long position as I believe in this company long term.

FWIW. I sold the Jan 140 calls and was able to buy the Jan 110 puts with the proceeds. I tried to do the same with March but never filled. As much as I love the company I think that something is likely to occur with Y2K that will turn the sentiment from greed to fear. Also the P & F short term indicators have all turned down and the longer term NYSEBP is very close and will probably reverse too.

regards,

Ray