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Technology Stocks : Citrix Systems (CTXS) -- Ignore unavailable to you. Want to Upgrade?

To: David Montgomery who wrote (7430)	12/19/1999 12:48:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 9068

David, The PEG ratio is really rather simple. It was developed as a valuation technique for growth stock. Basically, it works this way: you divide the P/E of a stock by its long-term growth rate. If the ratio is less than 1.00 it is considered undervalued. If the ratio is above 1.00 it is overvalued. If it is exactly 1.00 it is properly valued. If you go back to read the post I mad to Mike you can see three of the problems with the PEG ratio. It is insensitive to interest rates; it is insensitive to market risk; it is insensitive to cash flow. TTFN, CTC

To: David Montgomery who wrote (7430)	12/21/1999 12:04:00 AM
From: Riskmgmt	Read Replies (1) \| Respond to of 9068

David: I saw Chuzzlewit has explained the PEG ratio, so now you know. I am in Asia and writing this from a cyber cafe. I understand you concern about valuations or how to evaluate growth stocks such as CTXS. I brought with me a book called Dow 3600 with I started to read on the plane. I have only got through the first 3 chapters but it makes for fasinating reading. Simply put, the theory is that the old ways of evaluating a stock price will not work in the new paradigium, and that stocks are actually undervalued. I will comment more when I have time to read more. regards, Ray