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Technology Stocks : Tekelec -- Ignore unavailable to you. Want to Upgrade?

To: lml who wrote (1452)	4/5/2000 12:14:00 PM
From: BWAC	Read Replies (1) \| Respond to of 1648

I sure we don't want to go here: But could CSCO ever earn enough to really justify their market capitalization? Or how far away is a sane valuation for some of these companies with 10 Million in Sales and a market capitalization of 33 Billion? In CSCO's case, It's a great company, a fine one. But it's market cap is 500 Billion. That amount of 'money' or investment in essence is getting its owners a 'real' return in earnings of 2.6 Billion. Sounds great. But put another way that's .5% CSCO could earn 12 TIMES that amount for their shareholders if they just converted that 500 Billion to cash and invested it in a CD. I know. I know. Investors get a return from capital gains, the rate CSCO grows earnings, etc. I also know it is all about supply and demand. Demand for CSCO is overstripping supply. So price goes up. But does that really mean it is a good buy? Kinda makes a case for never investing in mutual funds? Who knows? But just think .5%? Eventually it all does come back to earnings. Eventually. Oneday. Someday.

To: lml who wrote (1452)	4/5/2000 12:46:00 PM
From: John Curtis	Respond to of 1648

LWL: You're right, we could talk about this forever(hopefully all the while TKLC moves higher, heh). When it comes to todays crop of "analysts" at the major houses however.....well....not meaning to disparage, but I consider them nothing more than glorified sales people. The product they're hustling for their bosses?? Equity valuations. I say this because I've seen so little hard analysis of all the "stuff" floating around out there. Mostly it's cheer-leading and rah rah.......so can we say market top everyone? Meanwhile....as par usual...TKLC just seems to keep going, and going, and going.... ;-) John~