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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (29124)	3/17/2000 2:11:00 PM
From: Mephisto	Respond to of 64865

Who is Fuzzymath? JDN, I think a stock is like a house or a fine gem, it is worth whatever people will pay for it, and people will pay more for companies with newer technology. Maybe, Paddy should become a magician! He got your watch! What color is he now? Is he blonde? He gets lighter with age does he not? It's cold here, but couple of guys have planted my new roses. Now, they tear up concrete for another bed. I hope I like these roses. If I don't, I guess I'll put in new ones next year! (ggg) It's a good day for SUNW!!!! Cheers, Mephisto

To: JDN who wrote (29124)	3/17/2000 7:32:00 PM
From: fuzzymath	Respond to of 64865

JDN, of course I know the leaders of any new age correctly sell at a higher multiple! I really do have a background in this stuff! My current job is developing portfolio performance analysis software, and I've worked for over 20 years developing mathematical modelling and data analysis software for the military. As for high growth companies having high price/earnings ratios: there is a purely mathematical/economic reason that justifies it. If you compare earnings that grow by 30%, with earnings that grow by 5%, with the return on a Treasury bond, you can come up with a theoretical "fair" relative value for the three. Even with a significantly higher price/earnings ratio, the high growth company will produce the same earnings return over the long term as the other company, and will also match the return of the very safe bond. I agree with you that the big techs are the best bets along these lines. I deplore risk, and the small floats of smaller companies make it impossible to get out when something disappoints the market. Kevin